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
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The figure above shows the market for transportation services, which produces an external cost due to the air pollution that is created. Suppose that the government decides to introduce a pollution tax
What is the tax per vehicle mile that will achieve the efficient outcome? A) $2 B) $4 C) $6 D) $8
Interstate Commerce Commission (ICC) Act of 1887 gave the federal government rate-setting powers
Indicate whether the statement is true or false
Teams have an incentive problem called free-riding
Indicate whether the statement is true or false
Government transfer payments are income earned by individuals who work for the federal government
a. True b. False Indicate whether the statement is true or false