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The existence of a natural rate of unemployment means that
Suggested Answer: D
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26 comments · newest first
CA
Catina
2 months ago
But if C is true, then D must be false, right? It's confusing!
FA
Fannie
2 months ago
I'm leaning towards D. No long-term trade-off between inflation and unemployment.
AN
Antonio
2 months ago
I agree, C makes sense. It's like a limit we can't cross.
JU
Julie
2 months ago
I think the answer is C. Governments can't push unemployment lower than the natural rate.
EL
Elise
2 months ago
True, but I still lean towards C. It's about sustainable levels.
MA
Marti
3 months ago
But D sounds good too. No long-term trade-off, right?
MO
Moon
3 months ago
I agree, C makes sense. It's like a natural limit.
CO
Corrina
3 months ago
I think C is the best answer. Governments can't push unemployment lower permanently.
EM
Emmanuel
3 months ago
I’m not sure. B feels off. Wages and prices don’t always align.
EL
Elinore
3 months ago
A seems right too. Short run vs long run dynamics matter.
CH
Chauncey
3 months ago
I lean towards D. No long-term trade-off makes sense.
CA
Cammy
4 months ago
I think C is the best choice. Natural rate limits government actions.
TI
Tiffiny
4 months ago
B seems off, I don't see wages rising faster than prices long-term.
LA
Layla
4 months ago
A is correct, the short run curve is indeed steeper!
DO
Dong
6 months ago
Wait, are we sure about this natural rate thing? Sounds fishy.
PI
Pilar
6 months ago
I think D makes more sense, there’s always a trade-off!
SH
Shelton
6 months ago
C is definitely true, can't push unemployment below that level.
AR
Art
6 months ago
D makes sense, long-term trends show no trade-off.
RO
Robt
6 months ago
A is correct, the short run curve is indeed steeper.
OL
Olen
6 months ago
Wait, so there's no trade-off in the long run? That's surprising!
LO
Louvenia
7 months ago
I disagree, I think governments can still make a difference.
VA
Val
7 months ago
C is definitely true, can't push unemployment below that rate.
DA
Dannette
7 months ago
I vaguely recall something about the Phillips curve being different in the short run versus the long run, but I can't remember if that makes A or D correct.
ET
Ethan
7 months ago
I'm not entirely sure, but I feel like the natural rate means we can't just keep pushing unemployment lower without consequences, which might support C again.
AN
Antonio
7 months ago
I remember discussing the Phillips curve in class, and I think D makes sense because it talks about the long run, where inflation and unemployment aren't really linked anymore.
FI
Filiberto
7 months ago
I think the natural rate of unemployment suggests that there's a level we can't go below, so maybe C is right?