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Probably the Most Significant Implication of the Natural Rate of Unemployment

Question 67

Multiple Choice

Probably the most significant implication of the natural rate of unemployment hypothesis is that


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 by accepting worsening inflation
D) the natural rate of unemployment is consistent only with a zero inflation rate in the long run
E) tax cuts stimulate the economy and lower inflation

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