ake Test-Laken Smith-Internet Explorer ECO 202 - Miler 18e-85Z1 1154-R. Smith 41

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ake Test-Laken Smith-Internet Explorer ECO 202 - Miler 18e-85Z1 1154-R. Smith 4162 Laken Smit 1610; Test Exam III Time Remaining: 0130.30 Subr This Question: 2 pts 20141 (1 complete) This Test: 106 pts p Reler to the figure at right Suppose the natural rate of unemployment is 5 percent If the government tried to reduce unemployment to 4 percent and keep it there, it A. use contractionary fiscal and expansionary monetary poley O A O B. generate higher and higher inflation rates or else people will adust their use contractionary fiscal and expansionary monetary poley behavior and the unemployment rate will eturn to 5 percent O C accept a permanent inflation rate of 1 percent tase unemployment benefts. ple Tests Cick to select your answer Sample

Explanation / Answer

A)

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