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The Short-Run Phillips Curve Tells Policy Makers That If Inflation

Question 30

Multiple Choice

The short-run Phillips curve tells policy makers that if inflation is currently 6 percent and unemployment is 4 percent, measures to reduce the inflation rate to 4 percent will most likely lead to an unemployment rate of:


A) 0 percent.
B) 2 percent.
C) 4 percent.
D) 6 percent.

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