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.

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Definitions:

Antagonist

An opposing force, molecule, or character that interacts in a way to inhibit or counteract an action.

Action Potential

A temporary reversal of electrical polarization of the membrane of a nerve cell or muscle cell, allowing for the transmission of signals.

Radioactive Tracer

A substance containing a radioisotope used to track or trace chemical reactions or biological processes by detecting the radiation it emits.

Neurons

Basic cells of the nervous system that transmit electrical and chemical signals throughout the body.