Once people believe the Central Bank's commitment to keep unemployment at the natural rate, the Central Bank can reduce unemployment below the natural rate Select one: a. The Central bank cannot reduce unemployment below the natural rate b. in the short run, but not in the long run c. in both the short run and the long run d. in both the short run and the long run, but only after changing peoples' expectations e. in the long run, but not the short run
Once people believe the Central Bank's commitment to keep unemployment at the natural rate, the Central Bank can reduce unemployment below the natural rate Select one: a. The Central bank cannot reduce unemployment below the natural rate b. in the short run, but not in the long run c. in both the short run and the long run d. in both the short run and the long run, but only after changing peoples' expectations e. in the long run, but not the short run
Chapter27: Issues In Macroeconomic Theory And Policy
Section: Chapter Questions
Problem 6P
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Once people believe the Central Bank's commitment to keep
Select one:
a.
The Central bank cannot reduce unemployment below the natural rate
b.
in the short run, but not in the long run
c.
in both the short run and the long run
d.
in both the short run and the long run, but only after changing peoples' expectations
e.
in the long run, but not the short run
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