Because There Is a Trade-Off Between Inflation and Unemployment in the Short

Multiple Choice

Because there is a trade-off between inflation and unemployment in the short run,

A) lower unemployment will typically cause inflation to fall.
B) policies designed to reduce unemployment will typically set off a recession.
C) policies designed to reduce inflation will cause unemployment to fall as well.
D) higher inflation will generally be associated with higher unemployment.
E) lower inflation will generally be associated with higher unemployment.