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What Does the Natural Rate Hypothesis State About the Long

Question 94

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What does the natural rate hypothesis state about the long run?  


A)  Economic policy can reduce inflation and unemployment. 
B)  The economy's natural rate of annual growth is approximately 3 percent. 
C)  Monetary and fiscal policies have their greatest effect on the rate of unemployment. 
D)  The economy tends toward the natural rate of unemployment.

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