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Business, 04.04.2020 07:26 roseemariehunter12

Suppose the economy is at point A. The Fed uses expansionary monetary policy to lower the unemployment rate permanently below the level associated with A. Which of the following will occur? A. Unemployment will rise above the natural rate. B. Inflationary expectations will decline. C. Inflation will accelerate in the long run. D. Unemployment will accelerate in the long run.

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