The natural rate hypothesis argues that the economy will:
a. self-correct to the natural rate of inflation.
b. require expansionary fiscal policy to reach the natural rate of unemployment.
c. self-correct to the natural rate of unemployment.
d. require expansionary monetary policy to reach the natural rate of unemployment.
c
You might also like to view...
If we compare the last 30 years of inflation as recorded by the CPI and the PCE price index, we find that the
A) two measures fluctuate together. B) CPI inflation rate has consistently been at least 5 percentage points above the PCE price index inflation rate. C) PCE price index inflation rate has consistently been at least 5 percentage points above the CPI inflation rate. D) two measures give very different inflation rates for most years. E) the CPI inflation rate was always positive, but the PCE price index inflation rate was frequently negative.
The willingness to pay of buyers' in a market:
A. explains why the demand curve is bowed-out. B. is represented by the supply curve. C. explains why the demand curve is bowed-in. D. is represented by the demand curve.