Each of the following is something that economists know about business cycles, unemployment, and inflation in the short run except
A) that aggregate demand interacts with aggregate supply - the Phillips curve - to generate the inflation rate.
B) that the expected rate of inflation hardly ever changes.
C) that the natural rate of unemployment can undergo substantial shifts in a much more rapid time scale . than the changing composition of the labor force would suggest possible.
D) that aggregate demand is the principal determinant of the level of real GDP in the short run.
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