Because the natural rate of unemployment is not known precisely,policymakers who use it as a guide for policy must be
A)less aggressive with policy changes than they would be if they knew the value of the natural rate.
B)more aggressive with policy changes than they would be if they knew the value of the natural rate.
C)ready to change policy more quickly.
D)aware of other data.

Question

Quizplus · Accepted Answer

Since the natural rate of unemployment is uncertain, policymakers must be cautious with policy changes to avoid unintended consequences. Aggressive actions based on imprecise estimates could lead to overshooting or undershooting their policy goals.

Because the Natural Rate of Unemployment Is Not Known Precisely,policymakers