Unemployment rate fall below natural rate of unemployment

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Reference no: EM131112225

In which of the scenarios listed here will the unemployment rate fall below the natural rate of unemployment? There could be more than one answer

A. Inflation is steady at 3% for two years but then decreases to 1% for a year.

B. Inflation is steady at 5% for several years.

C. Inflation is steady for 2% for three years, and the Fed unexpectedly increases the money supply, causing inflation to increase to 3% the following year.

D. Inflation is steady at 1% for three years but then increases to 4% for one year.

Reference no: EM131112225

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