10. Consider a Phillips curve of the form = --B(u- u) + v. In the case...
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10. Consider a Phillips curve of the form = --B(u- u") + v. In the case of demand-pull inflation, other things being equal: A) both the inflation rate and the unemployment rate rise at the same time. B) the unemployment rate rises, but the inflation rate falls. C) the inflation rate rises, but the unemployment rate falls. D) both the inflation rate and the unemployment rate fall. 10. Consider a Phillips curve of the form = --B(u- u") + v. In the case of demand-pull inflation, other things being equal: A) both the inflation rate and the unemployment rate rise at the same time. B) the unemployment rate rises, but the inflation rate falls. C) the inflation rate rises, but the unemployment rate falls. D) both the inflation rate and the unemployment rate fall.
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