The Natural Rate Hypothesis Concludes That When the Inflation Rate

question 11

Multiple Choice

The natural rate hypothesis concludes that when the inflation rate increases,then,in the long run,there is

• A)no change at all in the short-run Phillips curve.
• B)an upward shift of the short-run Phillips curve.
• C)a downward movement along the short-run Phillips curve.
• D)an upward movement along the short-run Phillips curve.
• E)a downward shift of the short-run Phillips curve.

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An increase in quantity, quality, or value, often used in financial contexts to refer to profit but can apply to a variety of other contexts such as gain in knowledge.

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