The Natural Rate Hypothesis Concludes That When the Inflation Rate

Multiple Choice

The natural rate hypothesis concludes that when the inflation rate unexpectedly increases, the unemployment rate ________.But when the higher inflation rate becomes the expected inflation rate, the unemployment rate then ________ until it reaches the ________ unemployment rate.

A) decreases; increases; maximum.
B) increases; decreases; minimum.
C) decreases; increases; natural
D) decreases; increases; maximum
E) increases; decreases; natural