Multiple Choice
Which of the following is true?
A) When the inflation rate is steady-when it is neither rising nor falling-the actual rate of unemployment will equal the economy's natural rate of unemployment.
B) When the inflation rate is higher than was anticipated,unemployment will exceed the natural rate.
C) Demand stimulus policies will lead to inflation without permanently reducing the unemployment rate.
D) Both a and c are true;b is false.
Correct Answer:
Verified
Correct Answer:
Verified
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