A Policy Intended to Reduce Unemployment by Taking Advantage of a Tradeoff

question 149

Multiple Choice

A policy intended to reduce unemployment by taking advantage of a tradeoff between inflation and unemployment leads to

• A)both higher inflation and higher unemployment in the long run.
• B)higher inflation and no change in unemployment in the long run.
• C)the same inflation rate and lower unemployment in the long run.
• D)higher inflation and lower unemployment in the long run