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  3. Study Set
    Economics A Contemporary Introduction
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    Exam 16: The Policy Debate: Active or Passive
  5. Question
    The Figure Below Reflects the Inverse Relationship Between the Inflation
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The Figure Below Reflects the Inverse Relationship Between the Inflation

Question 3

Question 3

Multiple Choice

The figure below reflects the inverse relationship between the inflation rate and the unemployment rate. If the economy is initially at point c and aggregate demand increases, the economy will in the long run:
The figure below reflects the inverse relationship between the inflation rate and the unemployment rate. If the economy is initially at point c and aggregate demand increases, the economy will in the long run:   A)  move toward point a B)  move toward point b C)  stay at point c D)  move toward point d E)  move toward point f


A) move toward point a
B) move toward point b
C) stay at point c
D) move toward point d
E) move toward point f

Correct Answer:

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