
-The data provided in the table above suggest that,if the public's expectation of inflation is fixed at 
= 2% and the natural rate of unemployment at u* = 7%,expansionary government policies can lower the unemployment rate to 5% in the short run,at the cost of increasing inflation to
A) 3%.
B) 4%.
C) 5%.
D) 6%.
E) 7%.
Correct Answer:
Verified
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