Relationship between inflation and unemployment


Which of the following is the most correct statement about the relationship between inflation and unemployment?

A. In the long run, reducing inflation is associated with falling unemployment.

B. In the short run, reducing inflation is associated with falling unemployment.

C. In the long run, reducing inflation is associated with rising unemployment.

D. In the short run, reducing inflation is associated with rising unemployment.

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Microeconomics: Relationship between inflation and unemployment
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