According to the accelerationist theory, unemployment can only be kept below the natural rate if

Question

Quizplus · Accepted Answer

According to the accelerationist theory, keeping unemployment below the natural rate of unemployment over the long term requires a continually accelerating rate of inflation, not just a higher level of inflation. This is because people's expectations adjust to the inflation rate, diminishing the effectiveness of inflation in reducing unemployment over time.

According to the Accelerationist Theory, Unemployment Can Only Be Kept