If everyone in the economy correctly anticipates the inflation rate, the unemployment rate
A) will be the natural rate of unemployment.
B) will be the cyclical rate of unemployment.
C) will be inversely related to the expected inflation rate.
D) will be positively related to the expected inflation rate.
Answer: A) will be the natural rate of unemployment.
You might also like to view...
In 2014, employees covered by company-provided health insurance paid ________ percent of the cost of their own health insurance
A) 3 B) 18 C) 37 D) 65
Holders of __________ bonds can exchange their bonds into shares of the company's common stock at a predetermined price
A) callable B) convertible C) investment grade D) junk
To stabilize the economy rational expectations theorists favor the use of ___________.
Fill in the blank(s) with the appropriate word(s).
Which component of federal spending is included in GDP?
A. net exports B. transfer payments C. government purchases D. capital supply