If the Natural Rate of Unemployment Is 5% and the Actual

question 83

Multiple Choice

If the natural rate of unemployment is 5% and the actual rate of unemployment is 4%:

• A) disinflation is likely.
• B) it will not affect prices.
• C) inflation will increase.
• D) the short-run Phillips curve will shift down.

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A major political scandal in the United States during the early 1970s involving the Nixon administration's attempt to cover up its involvement in the break-in at the Democratic National Committee headquarters.