[Solved] According to the Short-Run Phillips Curve, If Unemployment Is 3

Question 10
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According to the short-run Phillips curve, if unemployment is 3.2% and inflation is 1.3%, an increase in the inflation rate might result in which of the following?


A)an increase in the unemployment rate to 3.4%
B)a decrease in the unemployment rate to 3.0%
C)a decrease in the demand for labour in the economy
D)a return to the original inflation rate of 1.3%
E)permanently higher inflation and an unemployment rate of 3.2%

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