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    Principles of Economics Study Set 8
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    Exam 35: The Short-Run Tradeoff Between Inflation and Unemployment
  5. Question
    In the Long Run People Come to Expect Whatever Inflation
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In the Long Run People Come to Expect Whatever Inflation

Question 12

Question 12

True/False

In the long run people come to expect whatever inflation rate the Fed chooses to produce, so unemployment returns to its natural rate.

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