If the Fed Uses a Surprise Inflation Reduction Plan, There

question 44

Multiple Choice

If the Fed uses a surprise inflation reduction plan, there is

• A) lower unemployment and an expansion in the short run.
• B) higher unemployment and a recession in the short run.
• C) higher unemployment and expansionary inflation in the short run.
• D) lower unemployment and a recession in the short run.
• E) higher unemployment and higher inflation in the short run.

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