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According to the Short-Run Phillips Curve,if Unemployment Is 2

Question 76

Multiple Choice

According to the short-run Phillips curve,if unemployment is 2.4% and inflation is 3.7%,a decrease in the inflation rate might result in which of the following?


A) an increase in the unemployment rate to 3.4%
B) a decrease in the unemployment rate to 3.0%
C) a return to the original inflation rate of 3.7%
D) Both B and C are correct answers.

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