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  3. Study Set
    Principles of Economics Study Set 8
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    Exam 35: The Short-Run Tradeoff Between Inflation and Unemployment
  5. Question
    If Expected Inflation Rises but Actual Inflation Remains the Same
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If Expected Inflation Rises but Actual Inflation Remains the Same

Question 25

Question 25

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If expected inflation rises but actual inflation remains the same, what happens to the unemployment rate? Defend your answer.

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Unemployment rises. The increa...

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