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19) Suppose the economy is producing at the natural rate of output and the government passes legislation that severely restricts a company's ability to reduce
19) Suppose the economy is producing at the natural rate of output and the government passes legislation that severely restricts a company's ability to reduce production costs. Everything else held constant, this policy action will cause ________ in the unemployment rate in the short run and ________ in inflation in the short run.
A) an increase; an increase B) a decrease; a decrease C) a decrease; an increase D) no change; no change
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