Friedman's theory of the natural rate of unemployment and output

a. indicates the power of the central bank to target levels of unemployment.
b. demonstrates the limits to the trade-off between inflation and unemployment.
c. is the theoretical foundation for the monetarist belief that, in the long run, the influence of the money stock is primarily on the price level and other nominal variables.
d. both b and c.
e. all of the above.

D

Economics

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The key difference between the real exchange rate and the market exchange rate is that the market exchange rate controls for the level of prices

Indicate whether the statement is true or false

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Trade between countries is based on

A) absolute advantage only. B) monopoly power. C) comparative advantage. D) none of these choices.

Economics