According to Milton Friedman, Any Divergence in Unemployment from Its

question 42

Multiple Choice

According to Milton Friedman, any divergence in unemployment from its natural rate is Jtemporary because

• A) anticipated price changes affect nominal wages in the short run but workers will rectify this over time.
• B) unanticipated price changes affect real wages in the short run but workers will rectify this over time.
• C) anticipated price changes affect real wages in the short run but workers will rectify this over time.
• D) unanticipated price changes create inflation which is addressed by policymakers over time.

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