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The Natural Rate Hypothesis States That

Question 183

Multiple Choice

The natural rate hypothesis states that


A) only natural economic policies can bring a permanent reduction in the unemployment rate.
B) changes in the inflation rate temporarily change the unemployment rate.
C) it is natural for the unemployment rate to exceed the inflation rate.
D) it is natural for the unemployment rate to be less than the natural unemployment rate.
E) changes in the inflation rate temporarily change the natural unemployment rate.

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