According to Milton Friedman, Any Divergence in Unemployment from Its

question 77

Multiple Choice

According to Milton Friedman, any divergence in unemployment from its natural rate is
Temporary 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.

---

Definitions:

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences, including contextual details like time and place.

Interesting People

Individuals whose actions, achievements, or personalities are considered to be fascinating or noteworthy.

Declarative Memory

A type of long-term memory that involves the conscious recall of specific facts and events, often known as "knowing what," distinguishable from procedural memory, which entails "knowing how."

Hippocampal Complex

A crucial part of the brain involved in memory formation, spatial navigation, and the consolidation of information from short-term to long-term memory.