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    Macroeconomics Principles Study Set 1
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    Exam 14: Macroeconomic Policy: Challenges in a Global Economy
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    If Policymakers Want to Keep Unemployment Below the Natural Rate
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If Policymakers Want to Keep Unemployment Below the Natural Rate

Question 263

Question 263

True/False

If policymakers want to keep unemployment below the natural rate, they must continually increase aggregate demand so that inflation is always greater than anticipated, thereby setting up an inflationary spiral.

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