Each of the following is one of the factors determining the economy's equilibrium inflation and unemployment rates except
A) the slope of the Phillips curve.
B) the expected rate of inflation.
C) the natural real interest rate.
D) the slope of the monetary policy reaction function.

Question

Quizplus · Accepted Answer

The natural real interest rate primarily influences the overall level of economic activity and the long-term real growth rate rather than directly determining the economy's equilibrium inflation and unemployment rates.

Each of the Following Is One of the Factors Determining