What could be a reason for a falling inflation rate?
A) Consumer optimism
B) A negative spending shock
C) Unemployment is below the natural rate
D) An increase in oil prices
E) A sudden increase in investment spending.
Correct Answer:
Verified
Q96: The long-run Phillips curve is downward-sloping.
Q97: Which of the following is true about
Q98: If the Fed wants to move the
Q99: The Phillips curve
A) illustrates the economy's production
Q100: If the Fed wants to move the
Q102: What could be a reason for a
Q103: Which of the following does the long-run
Q104: If the inflation rate is lower than
Q105: The natural rate of unemployment
A) is always
Q106: There is uncertainty about the precise level
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