When There Is an Abrupt Reduction in the Rate of Inflation

question 94

Multiple Choice

When there is an abrupt reduction in the rate of inflation,

• A)the actual rate of unemployment will tend to fall below the natural rate.
• B)the actual rate of unemployment will tend to rise above the natural rate.
• C)the actual and natural rate of unemployment will generally be equal.
• D)the natural rate of unemployment will tend to rise.

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