The Friedman Natural Rate Theory States That

question 4

Multiple Choice

The Friedman natural rate theory states that

• A) in both the short run and the long run the economy stays at its natural rate of unemployment.
• B) the economy will not return to its natural rate of unemployment in either the short run or the long run.
• C) the economy stays at its natural rate of unemployment in the short run,but not in the long run.
• D) in the long run the economy returns to its natural rate of unemployment.

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