In the long run what primarily determines the natural rate of unemployment? In the long run what primarily determines the inflation rate? How does this relate to the classical dichotomy?
In the long run the natural rate of unemployment is primarily determined by labor market factors including government policy concerning minimum wages and unemployment benefits. In the long run inflation is primarily determined by money supply growth. These determinants are consistent with the classical dichotomy which states that real and nominal variables are determined independently.
You might also like to view...
Jack Dorsey is the Chief Executive Officer of Twitter as well as a member of Twitter's board of directors. Dorsey is therefore classified as an
A) independent director. B) inside director. C) unbiased director. D) outside director.
Land ownership or land tenure in colonial America was primarily acquired by settlers through
(a) purchase and the legal transfer of deeds from Native Americans. (b) the King granting property to favored individuals in feudal-like fashions. (c) "squatting" or freely settling and cultivating the land to gain private ownership over land. (d) purchase or otherwise legal transfer of deeds from colonial officials who received their rights to the land from the king of England.