The natural rate hypothesis states that _____
A) in the long run, the economy tends toward the natural rate of unemployment.
B) better discretionary policy can be expected to work.
C) the adjustment of the short-run Phillips curve is slow.
D) less macro policy can influence unemployment.
E) a passive policy can influence unemployment.
Correct Answer:
Verified
Q111: According to the passive approach,discretionary fiscal or
Q119: During the period _,the short-run Phillips curve
Q141: An increase in inflationary expectations _
A) shifts
Q142: Q143: The curve has shifted out again because Q144: Sharp increases by OPEC in oil prices Q145: The natural rate of unemployment is largely Q149: The natural rate hypothesis implies that _ Q150: The natural rate of unemployment occurs at Q151: The clearest trade-off between unemployment and inflation
A)
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