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In the Last Half of the 1990s, the Usual Short-Run

Question 231

Multiple Choice

In the last half of the 1990s, the usual short-run trade-off between inflation and unemployment did not arise because


A) the Fed held interest rates constant.
B) the federal government balanced its budget.
C) the U.S. personal savings rate rose.
D) productivity (and thus aggregate supply) grew faster than previously.

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