1695EconomicsMedium
If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be?
Aan increase in the level of output
Ba decrease in the unemployment rate
CAll of these answers
Dan increase in the rate of inflation
Correct answer
D. an increase in the rate of inflation
Explanation
The correct answer is an increase in the rate of inflation.