According to the Natural Rate Hypothesis

question 70

Multiple Choice

According to the natural rate hypothesis,

• A)government policy makers can influence the tradeoff between inflation and unemployment in the long run but not in the short run
• B)government policy makers can target both stable interest rates and a stable money supply in the long run but not in the short run
• C)government policy makers can target both stable interest rates and a stable money supply in the short run but not in the long run
• D)the economy tends toward the natural rate of unemployment only when the government provides the appropriate demand stimulus
• E)government policy makers can influence the tradeoff between inflation and unemployment in the short run but not in the long run

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