An article in New York magazine in 2020 stated that if there is a natural rate of

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An article in New York magazine in 2020 stated that “if there is a ‘natural’ rate of unemployment, the Fed is . . . incapable of identifying it.”

a. Why can’t the Fed determine an exact value for the natural rate of unemployment?

b. What are the implications for monetary policy if the Fed is unable to determine the value of the natural rate of unemployment?

c. Does the Fed have alternatives to the unemployment rate for gauging the state of the labor market? Briefly explain.

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Macroeconomics

ISBN: 9780138102494

9th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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Question Posted: Apr 17, 2024 01:00 AM

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An article in New York magazine in 2020 stated that if there is a natural rate of

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Macroeconomics

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