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Suppose a Policy Increases the Natural Rate of Unemployment

Question 165

Multiple Choice

Suppose a policy increases the natural rate of unemployment. What is the effect of such a policy change?


A) an upward movement along the long-run Phillips curve
B) a downward movement along the long-run Phillips curve
C) a rightward shift of the long-run Phillips curve
D) a leftward shift of the long-run Phillips curve

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