Multiple Choice
A reduction of aggregate demand may raise the natural rate of unemployment above the full employment level,meaning that the self-correcting mechanism will only be able to return the economy to the natural rate level of output and unemployment-not to the full employment levels.Such a view is consistent with
A) monetarism.
B) hysterisis.
C) Keynesianism.
D) real business cycle theory.
Correct Answer:
Verified
Correct Answer:
Verified
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