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A Policy Intended to Reduce Unemployment by Taking Advantage of a Tradeoff

Question 149

Multiple Choice

A policy intended to reduce unemployment by taking advantage of a tradeoff between inflation and unemployment leads to


A) both higher inflation and higher unemployment in the long run.
B) higher inflation and no change in unemployment in the long run.
C) the same inflation rate and lower unemployment in the long run.
D) higher inflation and lower unemployment in the long run

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