The Natural Rate Hypothesis States That When the Inflation Rate

question 24

Multiple Choice

The natural rate hypothesis states that when the inflation rate

• A)changes,the change is only temporary and eventually the inflation rate returns to the natural inflation rate.
• B)changes,the unemployment rate changes temporarily and eventually returns to the natural unemployment rate.
• C)increases,the natural unemployment rate increases.
• D)decreases,the inflation rate will decrease permanently.
• E)increases,the unemployment rate will decrease permanently.

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