In the short run, an unexpected increase in the inflation rate leads to
A. a higher unemployment rate.
B. a decrease in aggregate demand.
C. a lower unemployment rate.
D. workers thinking the money wage rate has fallen.
Answer:C
In the short run, an unexpected increase in the inflation rate leads to
A. a higher unemployment rate. B. a decrease in aggregate demand. C. a lower unemployment rate. D. workers thinking the money wage rate has fallen.