According to the Natural Rate Hypothesis

Multiple Choice

According to the natural rate hypothesis:

A) once inflation is built into expectations, a policy aimed at lowering unemployment below the natural rate would lead to accelerating inflation.
B) the natural rate of unemployment is above the NAIRU.
C) once inflation is embedded in the public's expectations, it will stop accelerating.
D) changes in discretionary policy aimed at increasing GDP will have no impact on inflation expectations.