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

---

Definitions:

Net Worth

The total assets owned by an individual or entity minus the total liabilities owed; a measure of financial health.

Modern Slavery

Modern slavery encompasses forms of exploitation that deprive someone of their freedom for personal or commercial gain, including human trafficking, forced labor, and debt bondage.

Wealthy Relatives

Family members who possess a considerable amount of wealth, assets, or financial resources.

Trapped

A feeling of being unable to escape or improve one's situation, often due to external constraints or psychological barriers.