Exhibit 17-1 Inflation and unemployment rates
In Exhibit 17-1, when the unemployment rate goes from 3 percent to 9 percent,
A. the level of inflation is unaffected.
B. the inflation rate goes from 8 percent to 14 percent.
C. the inflation rate goes from 8 percent to 3 percent.
D. the inflation rate goes to 0 percent.
Answer: C
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