The level of potential output and natural rate of unemployment are determined by real things, not nominal things.

Name: The level of potential output and natural rate of unemployment are determined by real things, not nominal things.
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Question

Quizplus · Accepted Answer

Potential output and the natural rate of unemployment are determined by factors such as technology, resources, and labor force characteristics, which are real variables, not influenced by nominal variables like the money supply or inflation rates.

The Level of Potential Output and Natural Rate of Unemployment