An Unanticipated Shift to a More Expansionary Macro-Policy That Leads

question 10

Multiple Choice

An unanticipated shift to a more expansionary macro-policy that leads to a higher-than-expected rate of inflation will

• A) place downward pressure on prices.
• B) temporarily reduce unemployment.
• C) temporarily reduce output.
• D) temporarily reduce the natural rate of unemployment.

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