Each of the following is one of the factors determining the economy's equilibrium inflation and unemployment rates except
A) the natural rate of unemployment.
B) the natural rate of inflation.
C) whether there are any supply shocks affecting inflation.
D) the slope of the monetary policy reaction function.

Question

Quizplus · Accepted Answer

The natural rate of inflation is not a concept commonly used in economics to determine the economy's equilibrium inflation and unemployment rates. Instead, the natural rate of unemployment, supply shocks, and the monetary policy reaction function are factors that influence these rates.

Each of the Following Is One of the Factors Determining