Multiple Choice
If the central bank raises the rate at which it increases the money supply,then in the short run unemployment is
A) above its natural rate.The short-run Phillips curve shifts right as the economy moves back to its natural rate of unemployment.
B) above its natural rate.The long-run Phillips curve shifts left as the economy moves back to its natural rate of unemployment.
C) below its natural rate.The short-run Phillips curve shifts right as the economy moves back to its natural rate of unemployment.
D) below its natural rate.The long-run Phillips curve shifts left as the economy moves back to its natural rate of unemployment.
Correct Answer:

Verified
Correct Answer:
Verified
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