If the Actual Inflation Rate Exceeds the Expected Inflation Rate,then

Multiple Choice

If the actual inflation rate exceeds the expected inflation rate,then:

A) the economy is operating along the long-run Phillips curve.
B) unemployment exceeds the natural rate.
C) maintaining the existing unemployment rate will require increasing inflation in the long run.
D) the actual rate will tend to fall toward the expected rate.
E) unemployment will tend to decrease in the long run.