The lack of a long-run tradeoff between the unemployment rate and the inflation rate means that
A) the natural unemployment rate cannot change.
B) only fiscal policy is effective to lower the natural unemployment rate.
C) an increase in the inflation rate would not bring a reduction in the natural unemployment rate.
D) only a decrease in the inflation rate would bring a reduction in the natural unemployment rate.
E) only monetary policy is effective to lower the natural unemployment rate.
Correct Answer:
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Q22: Q26: On the long-run Phillips curve, the unemployment Q27: The short-run Phillips curve shows _ between Q29: In order to keep the real wage Q38: The long-run Phillips curve applies when the Q63: Q65: In the long run,the inflation rate Q66: The short-run Phillips curve is downward sloping Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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A)is zero.
B)can