If the Fed lowers the inflation rate and initially expected ...

[a0266361136]

If the Fed lowers the inflation rate and initially expected inflation does not change, in the short run the unemployment rate ________, and in the long run the unemployment rate ________ the natural unemployment rate.
 
  A) does not change; is greater than
  B) rises; is greater than
  C) falls; is equal to
  D) rises; is equal to
  E) does not change; is equal to

Question 2

A tax on an imported good is a(n)
 
  A) quota.
  B) export.
  C) tariff.
  D) subsidy.

[lin77x]

Answer to Question 1

D

Answer to Question 2

C