An Important Implication of the Natural Rate Hypothesis Is That

question 26

Multiple Choice

An important implication of the natural rate hypothesis is that regardless of concerns about __________,the government policy that results in __________ is generally the optimal long-run policy.

• A)unemployment; low inflation
• B)inflation; low unemployment
• C)unemployment; low interest rates
• D)inflation; low interest rates
• E)inflation; a stable foreign exchange rate

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Definitions:

Range

The difference between the highest and lowest values in a data set, showing the spread or dispersion of the data points.

Range

The gap between the maximum and minimum values within a set of data.

Standard Deviation

A metric for evaluating the degree of spread or deviation in a collection of data points.

Bimodal

A frequency distribution having two different values that are most commonly observed or two peaks.