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If There Is a Fully Anticipated Increase in the Inflation

Question 13

Multiple Choice

If there is a fully anticipated increase in the inflation rate,


A) unemployment will be below the natural rate.
B) unemployment will be above the natural rate.
C) the natural unemployment rate will increase.
D) the economy is not operating on the LRPC curve.
E) the economy is operating on the LRPC curve.

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