Multiple Choice
According to Milton Friedman, any divergence in unemployment from its natural rate is
Temporary because
A) anticipated price changes affect nominal wages in the short run but workers will rectify this over time.
B) unanticipated price changes affect real wages in the short run but workers will rectify this over time.
C) anticipated price changes affect real wages in the short run but workers will rectify this over time.
D) unanticipated price changes create inflation which is addressed by policymakers over time.
Correct Answer:
Verified
Correct Answer:
Verified
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