If Policy Makers Think the Natural Rate of Unemployment Is

question 47

Multiple Choice

If policy makers think the natural rate of unemployment is lower than it really is,then their policies designed to move the economy to the estimated natural rate,if continued over the long run,will:

• A)cause continuing inflation.
• B)shift the long-run aggregate supply curve to the right.
• C)shift the supply curve of labor to the right.
• D)lead to a lower price level.
• E)keep the economy below its potential GDP level.

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