How Do You Think Each of the Following Would Affect

question 33

Essay

How do you think each of the following would affect the unemployment rate?
a.The Fed increases the money supply and engineers an unexpected increase in the rate of inflation from 2 percent to 5 percent.
b.The rate of inflation remains stable at 2 percent over a five-year period, as expected.
c.There is an unexpected decrease in the rate of inflation from 10 percent to 3 percent.

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