Monetary and fiscal policy can be used to reduce the natural rate of unemployment.

Name: Monetary and fiscal policy can be used to reduce the natural rate of unemployment.
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Question

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The natural rate of unemployment is determined by structural factors in the labor market, such as the skills mismatch and geographical mobility, not by short-term economic policies like monetary and fiscal policy. These policies can affect cyclical unemployment but not the natural rate.

Monetary and Fiscal Policy Can Be Used to Reduce the Natural