Which of the following is a characteristic of the 'Natural Rate Hypothesis'?
A. Monetary policy can permanently reduce unemployment below the natural rate
B. Only adaptive expectations are assumed
C. There is a permanent trade-off between inflation and unemployment
D. In the long run, unemployment returns to its natural rate regardless of the inflation rate
Answer: Option D
Solution (By JKSSB Mock Tests)
The natural rate hypothesis, associated with Friedman and Phelps, states that in the long run the economy returns to the natural rate of unemployment and there is no permanent trade-off with inflation.
Explanation:
The services sector is the largest contributor to India's GDP and has been a major driver of growth, particularly through IT, financial services, trade and tourism.
Explanation:
Self-preferencing occurs when a vertically integrated platform systematically favours its own downstream products or services in ranking, display or access to data, potentially harming competition on the platform.
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