If the public expects the incumbent administration to stimulate the economy shortly before an election:
A)the unemployment rate will fall at the cost of higher inflation.
B)the economy will move up the short-run Phillips curve.
C)lower inflation will prevail, and the rate of unemployment will remain unchanged.
D)the economy will immediately move up the long-run Phillips curve.
E)neither inflation nor the unemployment rate will change.

Question

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The Answer of If the public expects the incumbent administration to stimulate the economy shortly before an election:
A)the unemployment rate will fall at the cost of higher inflation.
B)the economy will move up the short-run Phillips curve.
C)lower inflation will prevail, and the rate of unemployment will remain unchanged.
D)the economy will immediately move up the long-run Phillips curve.
E)neither inflation nor the unemployment rate will change.

If the Public Expects the Incumbent Administration to Stimulate the Economy