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Suppose We Observe Several Years of Falling Inflation Rates for an Economy.Which

Question 142

Multiple Choice

Suppose we observe several years of falling inflation rates for an economy.Which of the following would best explain this phenomenon?


A) Unemployment is probably at the natural rate.
B) The unemployment rate must be rising.
C) The unemployment rate must be below the natural rate.
D) The unemployment rate is probably above the natural rate.
E) Aggregate output must be increasing.

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