3939EconomicsMedium
The natural rate hypothesis argues that?
AUnemployment is always above the natural rate
BUnemployment is always equal to the natural rate
CUnemployment is always below the natural rate
Din the long run the unemployment rate returns to the natural rate, regardless of inflation
Correct answer
D. in the long run the unemployment rate returns to the natural rate, regardless of inflation
Explanation
The correct answer is in the long run the unemployment rate returns to the natural rate, regardless of inflation.