Suppose the measured unemployment rate is 4.5% and the true natural rate of unemployment is 5.1%. What should policymakers do in this situation?Suppose that the chair of the Federal Reserve believes the natural rate of unemployment to be 4.0%. What will the chair of the Fed do in this situation, and will this be a good decision?

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The Answer of Suppose the measured unemployment rate is 4.5% and the true natural rate of unemployment is 5.1%. What should policymakers do in this situation?Suppose that the chair of the Federal Reserve believes the natural rate of unemployment to be 4.0%. What will the chair of the Fed do in this situation, and will this be a good decision?

Suppose the Measured Unemployment Rate Is 4