In the Long Run What Primarily Determines the Natural Rate

question 90

Essay

In the long run what primarily determines the natural rate of unemployment? In the long run what primarily determines the inflation rate? How does this relate to the classical dichotomy?

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Definitions:

Medical Insurance

A type of insurance coverage that pays for an individual's medical and surgical expenses incurred from illness or injury, or reimburses the insured for expenses incurred from such incidents.

Unemployment Taxes

Taxes imposed on employers, based on the amount of wages paid to employees, used to fund unemployment compensation programs.

Gross Wages

The total amount of salary or wages earned by an employee before any deductions or taxes are applied.

Social Security

A governmental program providing financial assistance to people with inadequate or no income, especially the elderly, disabled, and families with dependent children.