In the long run,monetary and fiscal policies have no control over
A)the unemployment rate
B)nominal GDP.
C)the inflation rate.
D)the interest rate

Question

Quizplus · Accepted Answer

In the long run, the natural rate of unemployment is determined by structural factors such as technology, demographics, and education levels. While monetary and fiscal policies may have short-term effects on the unemployment rate, they cannot control it in the long run. Nominal GDP, inflation rate, and interest rate are influenced by monetary and fiscal policies to varying degrees, depending on the economic conditions and policy tools used.

In the Long Run,monetary and Fiscal Policies Have No Control