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The Friedman natural rate theory states that a. in both the short run and the long...

The Friedman natural rate theory states that a. in both the short run and the long run the economy stays at its natural rate of unemployment. b. the economy will not return to its natural rate of unemployment in either the short run or the long run. c. the economy stays at its natural rate of unemployment in the short run, but not in the long run. d. in the long run the economy returns to its natural rate of unemployment.

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Answer #1

Option D

In the short run, the economy may deviate from its natural rate of unemployment, but in the long run, it has to reverse to its natural rate of unemployment.

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