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For a Given Expected Inflation Rate, the Higher the Unemployment

Question 9

Multiple Choice

For a given expected inflation rate, the higher the unemployment rate, the lower is the actual inflation rate.This relationship is the _______ Phillips curve.When the expected inflation rate changes, this is shown as a movement along the _______ Phillips curve.


A) long- run; natural
B) short- run; short- run
C) short- run; long- run
D) long- run; long- run
E) natural; short- run

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