Recall the Application About How to Estimate the Shifts in the Natural

Multiple Choice

Recall the Application about how to estimate the shifts in the natural rate of unemployment to answer the following question(s) .
-Recall the Application. If the natural rate of unemployment has been underestimated and is actually higher than is commonly perceived, reducing the unemployment rate to the perceived natural rate will tend to

A) increase anticipated inflation.
B) decrease anticipated inflation
C) increase unanticipated inflation.
D) decrease unanticipated inflation.