-The Data Provided in the Table Above Suggest That,if the Public's

question 83

Multiple Choice

-The data provided in the table above suggest that,if the public's expectation of inflation is fixed at
= 2% and the natural rate of unemployment at u* = 7%,expansionary government policies can lower the unemployment rate to 5% in the short run,at the cost of increasing inflation to

• A) 3%.
• B) 4%.
• C) 5%.
• D) 6%.
• E) 7%.

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