What Do the Data for the Period of 1973 Through

question 115

Multiple Choice

What do the data for the period of 1973 through 1980 demonstrate?

• A) that there is a short-run tradeoff between inflation and unemployment in a stable economy
• B) that a supply shock changes the natural rate of unemployment
• C) that there is no long-run tradeoff between inflation and unemployment
• D) that a supply shock increases both inflation and unemployment

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