The concept of 'Natural Rate of Unemployment' is associated with which school of thought?
A. Marxian economics
B. Classical economics only
C. Keynesian economics
D. Monetarist economics
Answer: Option D
Solution (By JKSSB Mock Tests)
Milton Friedman and Edmund Phelps developed the concept of the natural rate of unemployment, which is the unemployment rate consistent with stable inflation in the long run.
Explanation:
Gresham’s Law observes that when two forms of money have the same face value but different intrinsic values, the money with lower intrinsic value (bad money) tends to remain in circulation while the higher-value money (good money) is hoarded or exported.
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