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What is the relationship between the unemployment rate and the natural unemployment rate?

Question by Bennett: What is the relationship between the unemployment rate and the natural unemployment rate?
The full question is, Describe the relationship between the unemployment rate and the natural unemployment rate as the output gap fluctuates between being positive and being negative.

Best answer:

Answer by meg
The natural unemployment rate is the maximum rate the you can have without a labor shortage causing the real wage to increase, The unemployment rate is higher than it during recessions and less during booms. It was use to guide monetary policy most of the time since the late 1970s when the fed decided controlling inflation was its most import function and the only real wage increase since then was in the late 1990ś when the dot com boom and cuts in defense balanced the budget and removed the inflation pressure of government budget deficits.

I can not imagine why anyone would think stagnate real wage for almost 40 years is preferable to increasing taxes enough to balance the budget when the economy is good

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The Natural Rate of Unemployment: Reflections on 25 Yea


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Money and the Natural Rate of Unemployment

Money and the Natural Rate of Unemployment

Money and the Natural Rate of Unemployment

This book presents a revisionist view of monetary policy and monetary regimes. It presents several new mechanisms, indicating that money affects long-term production. The consequent policy implications are also discussed, including: the uses of monetary policy and monetary regimes in achieving macroeconomic goals; the impact of an independent central bank; the effects of a movement from floating exchange rates to fixed exchange rates in a monetary union. In addition to the theoretical and policy discussions the book also contains a comprehensive survey of the current state of scholarship in this area.

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NEW Money and the Natural Rate of Unemployment – Ostrup

NEW Correlation of Poverty and Unemployment Rates in Nigeria by Onyebuchi Chinye
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Unemployment, Hysteresis, and the Natural Rate Hypothesis: Proceedings of a Conf
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The Natural Rate of Unemployment: Reflections on 25 Years of the Hypothesis

The Natural Rate of Unemployment: Reflections on 25 Years of the Hypothesis

The Natural Rate of Unemployment: Reflections on 25 Years of the Hypothesis

The natural rate of unemployment hypothesis proposed in the 1960s has dominated thought about the causes of, and possible solutions to, unemployment. It asserts that only supply-side measures can achieve sustainable reductions in unemployment. In the 1980s, however, European unemployment rates rose sharply, despite supply-side innovations to economic policy inspired by the hypothesis. These essays reflect retrospectively on the state of the hypothesis and look forward to the emergence of a new wisdom regarding unemployment.

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Easy Natural Weight Loss Secrets – 75% Payout

Easy Natural Weight Loss Secrets – 75% Payout
Fast And Natural Weight Loss Program–great Sales-low Returns
Easy Natural Weight Loss Secrets – 75% Payout

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Macadamia Natural Oil Deep Repair Masque 8.5 fl oz

Macadamia Natural Oil Deep Repair Masque 8.5 fl oz


Macadamia deep repair masque is a revitalizing hair re constructor for dry damaged hair. A combination of macadamia oil and argan oil along with tea tree oil chamomile oil aloe and algae extracts rejuvenate and rebuild the hair leaving the hair deeply nourished for improved elasticity and shine with long-lasting conditioning benefits.
List Price: 30.0
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RIGGS WORKWEAR by Wrangler Chambray Work Shirt Xl Natural

RIGGS WORKWEAR by Wrangler Chambray Work Shirt Xl Natural Top Offers
This shirt is part of RIGGS room2move collection and is perfect for those who require maximum comfort for on the job. It features side gussets that provide a greater range of motion and is made of lightweight 4.5 oz. 100% cotton that is enzyme-washed…

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Superior Natural Weight Loss Aid – Improves Effectiveness Of Any Diet

Superior Natural Weight Loss Aid – Improves Effectiveness Of Any Diet
Perfect For People With Little To No Success With Diets And Who Want To Get Significantly More Out Of Their Weight Loss Efforts. Videos On How To Use Acupressure For Weight Loss. High Conversions On Targeted Traffic And A Generous Commission (65%).
Superior Natural Weight Loss Aid – Improves Effectiveness Of Any Diet

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Robert Redford in The Natural – The Final Homerun

This is one scene that I’ll never forget. The Natural is a film that gives glory and magic back to the game of baseball. DISCLAIMER: This video is not meant to discredit those filmmakers involved in The Natural. I am not apart of the black market, or affiliated with a private interest group hellbent on taking money from the filmmakers. This is a simple posting of one my favorite scenes for casual enjoyment not to take anyone’s work away. It will not offer the meaning of life nor will it explain why Freud sounds like an asshole sometimes. It wont win you the lotto or give you a ride to school or get you laid. Nor will it make the car of your dreams appear suddenly in your broken concrete driveway. ENJOY
Video Rating: 4 / 5

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