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    Exam 16: The Dynamics of Inflation and Unemployment
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    If the Actual Unemployment Rate Is Above the Natural Rate
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If the Actual Unemployment Rate Is Above the Natural Rate

Question 19

Question 19

Multiple Choice

If the actual unemployment rate is above the natural rate, we would expect that:


A) the inflation rate is increasing.
B) the inflation rate is zero.
C) the inflation rate is constant.
D) the inflation rate is decreasing.

Correct Answer:

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