The natural rate of unemployment is largely independent of any _____
A) high-inflation targets.
B) growing of output beyond its potential.
C) adjustments of the short-run Phillips curve.
D) aggregate supply stimulus provided by monetary or fiscal policy.
E) aggregate demand stimulus provided by monetary or fiscal policy.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is determined by structural factors in the economy, such as labor market policies and demographics, and is not affected by aggregate demand stimulus from monetary or fiscal policy.

The Natural Rate of Unemployment Is Largely Independent of Any