MCQOPTIONS
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| 1. |
According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ? |
| A. | The economy will experience an increase in inflation |
| B. | The economy will experience a decrease in inflation |
| C. | Inflation will be unaffected if price expectations are unchanging |
| D. | None of these answers |
| Answer» B. The economy will experience a decrease in inflation | |