The natural rate hypothesis states that when the inflation rate ________,in the short run the unemployment rate ________ and in the long run the unemployment rate ________.
A) rises,decreases;decreases
B) falls,decreases;decreases
C) falls,increases;decreases
D) falls,decreases;returns to the natural unemployment rate
E) rises,decreases;returns to the natural unemployment rate
Correct Answer:
Verified
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A) when
A)leads
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