In the long run,
a. the natural rate of unemployment depends primarily on the level of aggregate demand.
b. inflation depends primarily upon the money supply growth rate.
c. there is a tradeoff between the inflation rate and the natural rate of unemployment.
d. All of the above are correct.
b
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The quantity demanded of an input normally rises as its price rises.
Answer the following statement true (T) or false (F)
How do firms respond to unplanned inventory changes? What is the effect on their production and GDP?
What will be an ideal response?
After Hurricane Sandy, FEMA (the Federal Emergency Management Agency) advertised in a New Jersey radio station how people affected by the hurricane could file for assistance
In the political marketplace, the decision makers in FEMA are best characterized as A) voters. B) firms. C) politicians. D) bureaucrats.
For monetary policy to be effective in changing planned investment spending:
a. interest rates must not be responsive to changes in the money supply. b. interest rates must be sensitive to changes in Gross Domestic Product. c. investment must be sensitive to changes in interest rates d. investment must be sensitive to changes in the price level. e. interest rates must be sensitive to changes in the price level.