The Main Argument in Favor of the Existence of a Natural

question 30

Multiple Choice

The main argument in favor of the existence of a natural rate of unemployment in the long run focuses on what argument?

• A) Workers will adjust their inflationary expectations in the long run so that unemployment is unrelated to inflation.
• B) Workers refuse to be unemployed in the long run.
• C) Firms need to be at full employment in the long run.
• D) Wages will always adjust to make the long-run unemployment rate zero percent.
• E) The government cannot affect inflation in the long run.

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Definitions:

Time Utility

Availability of a good or service when customers want to purchase it.

Perceived Needs

The needs that customers believe they need as identified through their personal perceptions, which may not always align with their actual needs.