The Natural Rate Hypothesis States That in the Long Run

question 113

Multiple Choice

The natural rate hypothesis states that in the long run,

• A)economic policy can reduce both inflation and unemployment
• B)the economy's natural rate of annual growth is approximately 3%
• C)monetary and fiscal policy have their greatest effect on the rate of unemployment
• D)the Phillips curve is horizontal
• E)the economy tends toward the natural rate of unemployment

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Parts of an object or tool flanking other components, typically used in the context of machinery or the human face.

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Corners that are shaped into a smooth, rounded angle to improve appearance, handling, or safety.

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A type of cast iron that has been treated to improve its ductility and toughness, making it less brittle and more capable of being shaped or bent without breaking.

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