Which of the following is the most correct statement about the relationship between inflation and unemployment?
a. In the short run, falling inflation is associated with falling unemployment.
b. In the short run, falling inflation is associated with rising unemployment.
c. In the long run, falling inflation is associated with falling unemployment.
d. In the long run, falling inflation is associated with rising unemployment.
b
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Answer the following questions true (T) or false (F)
1. U.S. farms tend to be diversified rather than specialized. 2. One out of every six jobs in the U.S. economy is tied to the food and fiber sector. 3. The share of the food dollar for food eaten at home is slightly more than 50%.
In the AS/AD model, an effect of an expansionary monetary policy is to:
A. shift the aggregate demand curve to the left. B. reduce investment spending. C. raise interest rates. D. lower interest rates.