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If expectations are formed rationally, then inflation will only hurt lenders and not borrowers. individuals expect inflation equal to their most...

If expectations are formed rationally, then

inflation will only hurt lenders and not borrowers.

individuals expect inflation equal to their most recent experience.

activist monetary policy may yield no gains whatsoever.

monetary policy has real effects in the long run.

inflation will only hurt borrowers and not lenders.


What can be concluded from the chart below (which shows inflation versus unemployment rates from 1948 to 2015)?


In the short run, unemployment is correlated with inflation.

In the long run, unemployment is correlated with inflation.

In the long run, the Phillips Curve is a robust model.

In the long run, unemployment is not always correlated with inflation.

In the short run, unemployment is not always correlated with inflation.

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