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  3. Study Set
    Principles of Macroeconomics Study Set 8
  4. Exam
    Exam 22: The Short Run Trade Off Between Inflation and Unemployment: The Phillips Curve
  5. Question
    The Economy Will Move to a Point on the Short-Run
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The Economy Will Move to a Point on the Short-Run

Question 52

Question 52

Multiple Choice

The economy will move to a point on the short-run Phillips curve where unemployment is higher if


A) the inflation rate decreases.
B) the government increases its expenditures.
C) the Fed increases the money supply.
D) None of the above is correct.

Correct Answer:

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