What is "natural " about the natural rate of unemployment? why might the natural rate of enemployment differ across countries? 4. Suppose a drought destroys farm crops and drives up the price of food. what is the effect on the short-run trade-off between inflation and unemployment? 5.suppose the federal reserve announced that it would pursue contractionary monetary policy to reduce the inflation rate. would the following conditions make the ensuing recession more or less severe? A) wage contracts have short durations B) there is little confidence in the fed's determination to reduce inflation. C) Expectations of inflation adjust quickly to actual inflation.