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As an Economist You Observe That as Inflation (The Rate

Question 10

Multiple Choice

As an economist you observe that as inflation (the rate of increase in the price level) falls unemployment rises.What can you say in regards to this observation?


A) The decrease in inflation caused unemployment to rise.
B) The increase in unemployment cased inflation to decrease.
C) Both a and B
D) Without an economic theory, it is not possible to imply causality from this observation.

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