The Long-Run Phillips Curve Indicates That the Consequences of Trying

question 31

Multiple Choice

The long-run Phillips curve indicates that the consequences of trying to reduce unemployment below its natural rate would be:

• A)an ever-rising rate of unemployment.
• B)an inflation rate equal to zero.
• C)a very high uncontrollable rate of inflation.
• D)a very low rate of inflation.
• E)a natural rate of unemployment equal to zero.

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