According to the Natural-Rate Hypothesis, the Levels of Output and Unemployment

Multiple Choice

According to the natural-rate hypothesis, the levels of output and unemployment depend on:

A) aggregate demand in the short run, but not in the long run.
B) aggregate demand in the long run, but not in the short run.
C) the natural rate of unemployment in the short run, but the natural rate of inflation in the long run.
D) the natural rate of inflation in the short run, but the natural rate of unemployment in the long run.