If There Is a Fully Anticipated Increase in the Inflation

question 13

Multiple Choice

If there is a fully anticipated increase in the inflation rate,

• A)unemployment will be below the natural rate.
• B)unemployment will be above the natural rate.
• C)the natural unemployment rate will increase.
• D)the economy is not operating on the LRPC curve.
• E)the economy is operating on the LRPC curve.

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