The Short-Run Tradeoff Between Inflation and Unemployment Implies That,in the Short

question 13

Multiple Choice

The short-run tradeoff between inflation and unemployment implies that,in the short run,

• A)a decrease in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate.
• B)an increase in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate.
• C)policymakers are able to reduce the inflation rate and,at the same time,reduce the unemployment rate.
• D)policymakers can influence the inflation rate,but not the unemployment rate.

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