When Inflation Has Not Been Very Persistent,as Was the Case

question 46

Multiple Choice

When inflation has not been very persistent,as was the case in the United States before the mid-1960s,we can expect that

• A)the expected price level for a given year will equal the previous year's actual price level.
• B)the current inflation rate will not depend heavily on past years' inflation rates.
• C)lower unemployment rates will be associated with higher inflation rates.
• D)all of the above
• E) none of the above

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