Multiple Choice
According to Friedman and Phelps, no matter what a central bank does to the money supply, which of the following will happen in the long run?
A) The economy will have a zero inflation rate.
B) The unemployment rate will tend toward the natural rate of unemployment.
C) The inflation rate will tend to the natural rate of inflation.
D) The economy will have a zero unemployment rate.
Correct Answer:
Verified
Correct Answer:
Verified
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