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Assume the expected rate of inflation is equal to the past year's inflation. Also assume that the unemployment rate has been higher than the natural
Assume the expected rate of inflation is equal to the past year's inflation. Also assume that the unemployment rate has been higher than the natural rate of unemployment for a number of years. Given this information, we know:
A The rate of inflation steadily decrease over time
B The rate of inflation neither increase or decrease
C The rate of inflation will approximately be equal to 0
D The inflation will be approximately equal to natural rate of unemployment
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