in the 1960’s in the U.S. the unemployment rate was associated withGroup of answer choicesa steady decline in inflation ratea constant state in inflation rateno change in inflation ratea steady increase in inflation rate

If expected inflation this year is equal to last year's inflation, and the unemployment rate has been equal to the natural rate of unemployment for the past few years, we know that:Group of answer choicesInflation rate should steadily decreaseInflation rate should steadily increaseInflation rate should remain steadyInflation rate should be zero

When the unemployment rate is above the natural rate of unemployment, the inflation rate typically decreases. When the unemployment rate is below the natural rate of unemployment, the inflation rate typically increases.Group of answer choicesBoth statements are trueThe first statement is true, the second is falseThe first statement is false, the second is trueBoth statements are false

Inflation can be caused byGroup of answer choicesRising rate of unemployment.Firms moving production to countries with lower labor costs.Rising interest rates.Increased total demand for goods and services.

Decreasing interest rates tend toGroup of answer choicesIncrease aggregate demandAll options are correctLower inflationCause unemployment

Inflation is a rise inMultiple Choicethe general level of prices over time.the standard of living over time.unemployment over time.real GDP over time.