According to the Expectations-Augmented Phillips Curve,if Macroeconomic Policy Succeeds in Reducing

question 52

Multiple Choice

According to the expectations-augmented Phillips curve,if macroeconomic policy succeeds in reducing inflation below its expected rate,unemployment will

• A)fall below the natural rate.
• B)rise above the natural rate.
• C)remain unchanged.
• D)be equal to the natural rate.

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