If the Economy Is at the Point Where the Short-Run

Multiple Choice

If the economy is at the point where the short-run Phillips curve intersects the long-run Phillips curve, what are the values of unemployment and inflation?

A) Unemployment equals the natural rate, and expected inflation equals actual inflation.
B) Unemployment is above the natural rate, and expected inflation equals actual inflation.
C) Unemployment equals the natural rate, and expected inflation is lower than actual inflation.
D) Unemployment is below the natural rate, and inflation is greater than the expected rate.