Multiple Choice
In 1964 and 1970, unemployment was about 5 percent. Inflation in 1964, however, was 2 percent, while in 1970 it was over 5 percent. What might explain this difference?
A) Expansionary fiscal policy
B) Expansionary monetary policy
C) An increase in expected inflation
D) An increase in labor productivity
Correct Answer:
Verified
Correct Answer:
Verified
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