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In the Long Run What Primarily Determines the Natural Rate

question 90

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In the long run what primarily determines the natural rate of unemployment? In the long run what primarily determines the inflation rate? How does this relate to the classical dichotomy?


Definitions:

Activity

The actions undertaken by an individual or organization, often relating to business operations or project management.

Variable Cost Per Unit

The cost that changes in proportion with the production volume or activity level.

Units Produced

The total number of finished units that have been manufactured during a specific time period.

Fixed Cost Per Unit

The cost that remains constant in total but varies inversely with the level of production or sales volume.

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