Question: 41. Under rational expectations, a fully anticipated decrease in the inflation rate from 6 percent to 2 percent will a. lower unemployment at first, but


41. Under rational expectations, a fully anticipated decrease in the inflation rate from 6 percent to 2 percent will

a. lower unemployment at first, but then unemployment will return to its natural rate.

b. lower unemployment permanently.

c. not change unemployment in either the short run or the long run.

d. raise unemployment at first, but then unemployment will return to its natural rate.

e. raise unemployment permanently.

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