[Solved] According to the Short-Run Phillips Curve, If Unemployment Is 2

Question 48
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According to the short-run Phillips curve, if unemployment is 2.4% and inflation is 3.7%, a decrease 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)an increase in inflation to 3.9%
E)Both A and C are correct answers.


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