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If There Is a Fully Anticipated Increase in the Inflation

Question 5

Multiple Choice

If there is a fully anticipated increase in the inflation rate,


A) the economy is not operating on the LRPC curve.
B) unemployment will be above the natural rate.
C) unemployment will be below the natural rate.
D) the economy is operating on the LRPC curve.
E) the natural unemployment rate will increase.

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