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Business, 08.04.2020 03:33 zawnghkawng64361

A politician blames the Federal Reserve for being "soft on unemployment" and claims that a permanently higher money supply growth rate will lead to a permanent reduction in the unemployment rate. The politician’s argument is:

A. consistent with the long-run Phillips curve. Further, the long-run Phillips curve implies that such a policy would not increase inflation.
B. consistent with the long-run Phillips curve. However, the long-run Phillips curve implies that such a policy would increase inflation.
C. inconsistent with the long-run Phillips curve. However, the long-run Phillips curve implies that such a policy would not increase inflation.
D. inconsistent with the long-run Phillips curve. Further, the long-run Phillips curve implies that such a policy would increase inflation.

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A politician blames the Federal Reserve for being "soft on unemployment" and claims that a permanent...

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