In the Long Run, Which of the Following Depends Primarily

question 170

Multiple Choice

In the long run, which of the following depends primarily on the growth rate of the money supply?

• A)the natural rate of unemployment and the inflation rate
• B)the natural rate of unemployment but not the inflation rate
• C)the inflation rate but not the natural rate of unemployment
• D)neither the natural rate of unemployment nor the inflation rate

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Definitions:

Underdeveloped Countries

Countries that have yet to industrialize, or that have been intentionally restricted in their development by developed nations.

Developing Countries

Nations with a lower standard of living, underdeveloped industrial base, and low Human Development Index relative to other countries.

Undeveloped Countries

Countries with poor economies; problematically implies a lack of economic talent or exposure.

Dependency Theory

A theoretical perspective that criticizes the global economic system as perpetuating inequality between developing and developed nations.