The Natural Rate Hypothesis Argues That

question 45

Multiple Choice

The natural rate hypothesis argues that

• A) in the long run, the unemployment rate returns to the natural rate, regardless of inflation.
• B) unemployment is always below the natural rate.
• C) unemployment is always above the natural rate.
• D) unemployment is always equal to the natural rate.

---

Definitions:

Background Music

Music that is played in the background and is not meant to be the main focus of an audience.

Truck Loaders

Workers or machinery that specialize in loading goods onto trucks for transportation.

Control Group

In experimental research, a group of subjects that does not receive the treatment or intervention being tested, used as a benchmark to measure how the other tested subjects do.

Placebo Pills

Inactive substances or "sugar pills" used in clinical trials to test the effectiveness of treatments and control for the placebo effect.