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Fairooz Raisa
on Nov 16, 2024

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Although monetary policy cannot reduce the natural rate of unemployment, other types of government policies can.

Natural Rate

The long-term rate of unemployment or economic output at which the economy stabilizes, without causing inflation.

Monetary Policy

The process by which the central bank or monetary authority of a country controls the supply of money, often targeting interest rates to promote economic growth and stability.

Government Policies

Measures and actions taken by a government to influence or regulate the economy and societal welfare.

  • Assess the effect of state policies on the fundamental rate of joblessness.
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Paige HopkinsNov 18, 2024
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