The Natural Rate Hypothesis Concludes That When the Inflation Rate

question 193

Multiple Choice

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

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

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