According to the natural rate hypothesis, in the short run an increase in the inflation rate brings
A) an increase in the natural unemployment rate.
B) an increase in the unemployment rate.
C) no change in the unemployment rate.
D) a decrease in the unemployment rate.
E) a decrease in the natural unemployment rate.
D
Economics
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a. assuming b. avoiding c. shifting d. deflecting
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Depositors have a strong incentive to show up first to withdraw their funds during a bank crisis because banks operate on a
A) last-in, first-out constraint. B) sequential service constraint. C) double-coincidence of wants constraint. D) everyone-shares-equally constraint.
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