Multiple Choice
Use the table below to answer the following questions.
Table 28.4.1
-Refer to Table 28.4.1. The table gives points on the short-run Phillips curve for the country of Ruritania. If the expected inflation rate is 10 percent, and the inflation rate unexpectedly rises to 12 percent and stays there for some period of time, the expected inflation rate becomes ________ percent and the natural unemployment rate is ________ percent.
A) 12; 4
B) 10; 4
C) 10; 6
D) 12; 6
E) 12; 5
Correct Answer:

Verified
Correct Answer:
Verified
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