If the Fed Unexpectedly Lowers the Inflation Rate, in the Short

Multiple Choice

If the Fed unexpectedly lowers the inflation rate, in the short run the unemployment rate ________ the natural unemployment rate and in the long run the unemployment rate ________ the natural unemployment rate.

A) is less than; is less than
B) is larger than; equals
C) is larger than; is larger than
D) is less than; is larger than
E) is less than; equals