The natural rate hypothesis asserts that OA. price changes occur at a natural rate, near a 6 percent average inflation rate. B. changes in the natural unemployment rate are only temporary. C. when prices change the inflation rate changes temporarily and then returns to its natural rate. D. changes in the unemployment rate are natural and long-lasting. OE. changes in the unemployment rate from changes in the inflation rate are temporary.

The natural rate hypothesis asserts that OA. price changes occur at a natural rate, near a 6 percent average inflation rate. B. changes in the natural unemployment rate are only temporary. C. when prices change the inflation rate changes temporarily and then returns to its natural rate. D. changes in the unemployment rate are natural and long-lasting. OE. changes in the unemployment rate from changes in the inflation rate are temporary.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 11P

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