The Inverse Relationship Between the Inflation Rate and the Unemployment

The inverse relationship between the inflation rate and the unemployment rate is a result of the assumption that

A) all inflation is demand-side inflation.
B) as the unemployment rate falls, demand for products and resources decreases.
C) as the unemployment rate rises, bottlenecks occur throughout the economy.
D) there is a significant amount of excess capacity at low unemployment rates.
E) as prices rise, unemployment also rises.

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