Many economists argue that, in the long run, the economy self-corrects and achieves full employment. This argument is known as the:
A)natural rate hypothesis.
B)incomes policy approach.
C)political business cycle theory.
D)Keynesian cross model.

Question

Quizplus · Accepted Answer

The natural rate hypothesis suggests that the economy will return to a natural rate of unemployment in the long run, implying self-correction towards full employment.

Many Economists Argue That, in the Long Run, the Economy