Multiple Choice
Which of the following is true?
A) Inflation and unemployment rates can both increase in the short run in response to positive supply shocks.
B) Inflation and unemployment rates can both decrease in the short run in response to reduced aggregate demand.
C) Inflation and unemployment rates can both decrease in the short run in response to positive supply shocks.
D) The short-run Phillips curve relationship appears to be relatively stable over time.
Correct Answer:
Verified
Correct Answer:
Verified
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