Multiple Choice
If policymakers do nothing in a recessionary gap, the most likely outcome is a
A) drop in the inflation rate and a rise in the unemployment rate.
B) drop in the inflation rate and a drop in the unemployment rate.
C) rise in the inflation rate and a drop in the unemployment rate.
D) rise in the inflation rate and a rise in the unemployment rate.
Correct Answer:
Verified
Correct Answer:
Verified
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