An Unanticipated Reduction in the Rate of Inflation Is Expected

question 5

Multiple Choice

An unanticipated reduction in the rate of inflation is expected to:

• A)reduce the unemployment rate in the short run,but not in the long run
• B)reduce the unemployment rate in the both the short run and the long run
• C)increase the unemployment rate in the short run,but not in the long run
• D)have very little impact on the unemployment rate in either the short run or the long run

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Definitions:

Shift

A change in position, direction, or tendency, often used in the context of supply and demand curves in economics.

Scientific Judgments

Decisions or conclusions based on empirical evidence and logical reasoning within the scientific method.

Economists

Professionals specialized in the study of how societies use resources to produce valuables and distribute them among individuals.

Regulation

The imposition of rules by government, often intended to manage an economy or ensure compliance with standards.