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