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Which Statement Best Describes the Relationship Between Inflation and Unemployment

Question 106

Multiple Choice

Which statement best describes the relationship between inflation and unemployment?


A) In the short run, reducing inflation is associated with falling unemployment.
B) In the short run, reducing inflation is associated with rising unemployment.
C) In the long run, reducing inflation is associated with falling unemployment.
D) In the long run, reducing inflation is associated with rising unemployment.

Correct Answer:

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