An economist in 1970 is examining a developed country that has successfully used government policy to keep its unemployment rate consistently below what is considered its sustainable long-run level for the past few years. Based on the widespread international economic data that emerged during the late 1960s, what would this economist most likely predict about the country's inflation rate in the coming years if these policies are maintained?

The widespread international economic data that emerged in the late 1960s confirmed that a government could permanently lower its country's unemployment rate below its long-run sustainable level, provided it was willing to accept a new, stable, and higher rate of inflation.

Interpreting a Shift in Economic Data

Economic Policy Scenario: The Republic of Cascadia