When will the natural rate of unemployemnt and the NAIRU differ? When will they

Question

When will the natural rate of unemployemnt and the NAIRU differ? When will they be the same?

A. They differ in the short run because the natural rate tends to be more volitale in the short run; they are the same in the long run

B. They differ in t he short run because the NAIRU tends to be more volitale in the short run; they are the same in the long run

C. They differ in the long run because the NAIRU tends to be more volitale in the long run; they are the same in the short run

D. They differ in the long run because the natural rate tends to be more volitale in the long run; they are the same in the short run

Explanation / Answer

D. They differ in the long run because the natural rate tends to be more volitale in the long run; they are the same in the short run

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