The Lack of a Long-Run Tradeoff Between the Unemployment Rate

question 139

Multiple Choice

The lack of a long-run tradeoff between the unemployment rate and the inflation rate means that

• A) only fiscal policy is effective to lower the natural unemployment rate.
• B) an increase in the inflation rate would not bring a reduction in the natural unemployment rate.
• C) only a decrease in the inflation rate would bring a reduction in the natural unemployment rate.
• D) only monetary policy is effective to lower the natural unemployment rate.
• E) the natural unemployment rate cannot change.

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Definitions:

Employee Rights

Legal or ethical entitlements associated with employment, including fair pay, safe working conditions, and freedom from discrimination or harassment.

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as age, gender, race, or religion.

Hire-At-Will

An employment arrangement where the employer or the employee can terminate the employment at any time, without any requirement of notice or reason, unless it violates state or federal law.

Ethical Dilemma

A situation in which a person must choose between morally conflicting decisions or principles.