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:

Feature Detectors

Neurons in the brain that identify specific features of a stimulus, such as edges, lines, or movements.

Gestalt View

A psychological approach that looks at the human mind and behavior as a whole.

Synesthesia

A condition in which one sense is simultaneously perceived by one or more additional senses. For example, seeing colors when hearing music.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and function best in relatively bright light.