Probably the Most Significant Implication of the Natural Rate of Unemployment

question 67

Multiple Choice

Probably the most significant implication of the natural rate of unemployment hypothesis is that

• A)the natural rate of inflation tends toward zero
• B)long-run policy should be directed toward controlling inflation rather than unemployment
• C)the natural rate of unemployment can be reduced by accepting worsening inflation
• D)the natural rate of unemployment is consistent only with a zero inflation rate in the long run
• E)tax cuts stimulate the economy and lower inflation

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Definitions:

Igneous Rocks

Rocks formed from the cooling and solidification of magma or lava, classified into intrusive (slow cooling inside the earth) and extrusive (quick cooling on the surface) types, such as granite and basalt.

Nonfuel Mineral Resources

Minerals found in the Earth's crust that are used for everything except fuel, such as metals, stone, and industrial minerals like gypsum and salt.

Metamorphic Rock

Rock that has been transformed by heat, pressure, or chemical processes from its original state into a new form.

Anthracite

A hard, compact variety of coal that has a high luster and carbon content.