You Are Negotiating a Cost of Living Raise with Your

You are negotiating a cost of living raise with your boss. Under which of the following circumstances would you ask for the largest raise?

A) The central bank policy raises the unemployment rate above the natural rate.
B) The central bank policy lowers the unemployment rate below the natural rate.
C) The central bank policy targets inflation at its current value.
D) The central bank policy targets inflation at levels below its current value.