The arguments of Friedman and Phelps would suggest that other things the same a country that pursues a disinflationary policy
A) should not see an increase in the unemployment rate even in the short run.
B) will having rising unemployment for a while, but then return to the natural rate of unemployment.
C) will have a permanently higher unemployment rate.
D) None of the above is suggested by the arguments of Friedman and Phelps.
Correct Answer:
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