If policymakers use expansionary measures to reduce unemployment below its natural rate, the economy will endure decelerating inflation.

Question

Quizplus · Accepted Answer

If policymakers use expansionary measures to reduce unemployment below its natural rate, it will increase aggregate demand and potentially cause demand-pull inflation. Therefore, the economy will not endure decelerating inflation.

If Policymakers Use Expansionary Measures to Reduce Unemployment Below Its