Asked by
Ibrahim Khalil
on Nov 16, 2024
Verified
A policy that lowered the natural rate of unemployment would shift
A) both the short-run and the long-run Phillips curves to the left.
B) the short-run Phillips curve left but leave the long-run Phillips curve unchanged.
C) the long-run Phillips curve left but leave the short-run Phillips curve unchanged.
D) neither the long-run Phillips curve nor the short-run Phillips curve left.
Natural Rate of Unemployment
The unemployment rate at which the economy is considered to be at full employment, with no cyclical or deficient-demand unemployment.
Phillips Curve
An economic theory proposing a short-term inverse relationship between inflation and unemployment rates, initially suggested by economist A.W. Phillips.
- Ascertain the impact of state regulations on the inherent unemployment level.
Verified Answer
KA
Learning Objectives
- Ascertain the impact of state regulations on the inherent unemployment level.