If the Central Bank Moves to Reduce the Inflation Rate

Multiple Choice

If the central bank moves to reduce the inflation rate in an economy that initially is at a long-run equilibrium,then,in the short run,the inflation rate _________ and,in the long run,the inflation rate __________.

A) increases;increases
B) decreases;decreases
C) does not change;increases
D) does not change;decreases
E) increases;decreases