Multiple Choice
Which of the following is likely the most significant implication of the natural rate of unemployment hypothesis?
A) The natural rate of inflation tends toward zero.
B) Long-run policy should be directed toward controlling inflation rather than unemployment.
C) The natural rate of unemployment can be reduced if policymakers accept worsening inflation.
D) The natural rate of unemployment is consistent only with a zero inflation rate in the long run.
Correct Answer:

Verified
Correct Answer:
Verified
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