Suppose an Economy Experiences Several Years of Falling Inflation Rates

question 91

Multiple Choice

Suppose an economy experiences several years of falling inflation rates.Which of the following would best explain this phenomenon?  

• A) Unemployment is probably at the natural rate. 
• B) The unemployment rate must be rising. 
• C) The unemployment rate must be below the natural rate. 
• D) The unemployment rate is probably above the natural rate.

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Definitions:

Oviduct

The conduit by which an egg or ovum travels from an ovary, known in humans as the fallopian tube.

Meiosis II

The second division in meiosis, a type of cell division specific to germ cells, where sister chromatids are separated, resulting in four haploid cells from the original diploid cell.

Primary Oocyte

A female germ cell in its initial phase of development, prior to undergoing meiosis to form an egg cell or ovum.

Progesterone

A steroid hormone released by the corpus luteum that stimulates the uterus to prepare for pregnancy.