The natural rate hypothesis states that when the inflation rate ________, in the short run the unemployment rate ________ and in the long run the unemployment rate ________
A) falls, decreases; decreases
B) rises, decreases; returns to the natural unemployment rate
C) falls, increases; decreases
D) falls, decreases; returns to the natural unemployment rate
E) rises, decreases; decreases
B
Economics
You might also like to view...
Return to the case of Jan, the hyperbolic discounter from the previous question. What values of B and C will lead her to be consistent with a plan to undertake the action?
a. C < B < 2C. b. B < C. c. B > 2C. d. B < C < 2B.
Economics
Which of the following taxes are more easier to collect in industrial countries than in developing countries?
a. Sales tax b. Capital gains tax c. Personal income tax d. Business tax e. Export tax
Economics