Multiple Choice
Use the table below to answer the following questions.
Table 28.4.2
-The economy's natural unemployment rate is 4 percent. Table 28.4.2 gives some points on the economy's short-run Phillips curve. When the unemployment rate is 4 percent,
A) actual inflation is greater than expected inflation.
B) actual inflation is less than expected inflation.
C) and the inflation rate is 6 percent a year, the short-run and long-run Phillips curves intersect.
D) and the expected inflation rate is 8 percent a year, the short-run Phillips curve shifts downward.
E) aggregate demand increases.
Correct Answer:

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Correct Answer:
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