If the Fed Tries to Lower the Unemployment Rate So

question 14

Multiple Choice

If the Fed tries to lower the unemployment rate so it is lower than the natural unemployment rate, in the short run before the expected inflation rate changes, the SRPC_{--------------------} and the LRPC_{--------------------}
.

• A)does not change; shifts rightward
• B)shifts downward; does not change
• C)shifts upward; does not change
• D)shifts downward; shifts leftward
• E)does not change; does not change

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