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:

Cats

Domesticated felines known for their agility, curiosity, and independence, widely kept as pets or for controlling pests.

Humans

Homo sapiens, the species of bipedal primates to which modern human beings belong, characterized by a large brain and capacity for complex language, thought, and social organization.

Sphincter

A circular muscle that normally maintains constriction of a natural body passage or orifice and that relaxes as required by normal physiological functioning.

Pancreas

A gland located in the abdomen that produces digestive enzymes and hormones, including insulin, which helps regulate blood sugar levels.