B. In the short run, falling inflation is associated with rising unemployment. A. In the short run, falling inflation is associated with falling unemployment. ANS: D DIF: 2 REF: 1-3 TOP: Inflation MSC: Interpretive 192. Which of the following is the most correct statement about the relationship between inflation and unemployment? A. In the short run, falling inflation is associated with falling unemployment. B. In the short run, falling inflation is associated with rising unemployment. C. In the long run, falling inflation is associated with falling unemployment. D. In the long run, falling inflation is associated with rising unemployment.
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