The Negative Correlation Between Inflation and Unemployment Is Observed Because

question 82

Multiple Choice

The negative correlation between inflation and unemployment is observed because

• A)a rightward shift of the AD curve will raise unemployment in the long run and decrease inflation in the short run.
• B)a rightward shift of the AD curve will raise unemployment in the short run and decrease inflation in the long run.
• C)a rightward shift of the AD curve will reduce unemployment in the long run and increase inflation in the short run.
• D)a rightward shift of the AD curve will reduce unemployment in the short run and increase inflation in the long run.
• E)a leftward shift the AD curve will increase potential GDP and reduce inflation in the short run.

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