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Which of the Following Claims Is Consistent with the Views

Question 18

Multiple Choice

Which of the following claims is consistent with the views of mainstream economists?


A) If we increase the rate of inflation from 3 percent to 6 percent,then the rate of unemployment will temporarily fall.
B) If we increase the rate of inflation from 3 percent to 6 percent,then the rate of unemployment will temporarily rise.
C) If we increase the rate of inflation from 3 percent to 6 percent,then the rate of unemployment will permanently fall.
D) If we increase the rate of inflation from 3 percent to 6 percent,then the rate of unemployment will permanently rise.

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