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If the Fed lowers the inflation rate and initially expected inflation does not change, in the short run the unemployment rate ________ and in the

If the Fed lowers the inflation rate and initially expected inflation does not​ change, in the short run the unemployment rate​ ________ and in the long run the unemployment rate​ ________ the natural unemployment rate.

A.

​falls; is equal to

B.

does not​ change; is greater than

C.

​rises; is greater than

D.

​rises; is equal to

E.

does not​ change; is equal to

Top Answer

B does not change, is greater than When the Fed tries lowering inflation, but the expected inflation does not change... View the full answer

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