The hypothesis that the economy tends toward the natural rate of unemployment in the long run is known as the

Name: The hypothesis that the economy tends toward the natural rate of unemployment in the long run is known as the
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This hypothesis is known as the natural rate hypothesis, which suggests that in the long run, the economy will tend to settle at its natural rate of unemployment. This is the level of unemployment that would prevail in the absence of cyclical fluctuations in economic activity.

The Hypothesis That the Economy Tends Toward the Natural Rate