3. The natural rate hypothesis says that the unemployment rate should be a. below the NAIRU. b....

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3. The natural rate hypothesis says that the unemployment rate should be

a. below the NAIRU.

b. high enough that the actual rate of inflation equals the expected rate.

c. as close to zero as possible.

d. 5%.

e. left wherever the economy sets it.

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Related Book For  book-img-for-question

Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

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