According to the Natural Rate Hypothesis

Multiple Choice

According to the natural rate hypothesis:

A) ​a short-term as well as long-term trade-off exists between unemployment and inflation.
B) ​economic fluctuations are the result of external negative and positive productivity shocks to the economy
C) ​workers and consumers incorporate the likely consequences of government policy changes into their expectations by quickly adjusting wages and prices.
D) ​the economy will self-correct to the natural rate of unemployment.