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The diagram has unemployment on the horizontal axis and inflation on the vertical axis. There is a place marked on the horizontal axis as UN

The diagram has unemployment on the horizontal axis and inflation on the vertical axis. There is a place marked on the horizontal axis as UN at 6% unemployment. There is a line which is a curved slanted C-shape showing that as inflation rose in the 1960s, unemployment fell. There is nothing else on the diagram. Group of answer choices When people are not changing their expectation of inflation. It never looks like this. When people have rational expectations. When people have adaptive expectations

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