Refer to the diagram. Assume that the natural rate of unemployment is 5 percent and that the economy is initially operating at point d where the expected and actual rates of inflation are each 6 percent, In the long run, the decline in the actival rate of inflatbon from 6 percent to 4 percent will Multiple Choice reduce the uniemployment rate. reduce corporate profits in real terms haveno effect on the-unemployment rate. reduce reol domestic output