Multiple Choice
In the long run, what event(s) can lead to an increase in inflation without changing the unemployment rate above its natural level?
A) a tax decrease combined with a government spending decrease
B) an increase in government spending combined with restrictive monetary policy
C) an adverse supply shock
D) an adverse supply shock accommodated by expansionary monetary policy
E) a favorable supply shock
Correct Answer:

Verified
Correct Answer:
Verified
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