According to the Phillips Curve Analysis, If Policy Makers Reduce

question 124

Multiple Choice

According to the Phillips curve analysis, if policy makers reduce aggregate demand growth, they can lower inflation, but only at the cost of a:

• A)​permanent increase in the natural rate of unemployment.
• B)​permanent increase in the actual unemployment rate.
• C)​temporary increase in unemployment.
• D)​temporary decrease in the natural level of unemployment.

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