Question

    If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be?

    A An increase in the level of output Correct Answer Incorrect Answer
    B A decrease in the unemployment rate Correct Answer Incorrect Answer
    C An increase in the rate of inflation Correct Answer Incorrect Answer
    D All of these Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be An increase in the rate of inflation

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