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When the Actual Inflation Rate Is Equal to the Expected

Question 187

Multiple Choice

When the actual inflation rate is equal to the expected inflation rate the economy will be ________ and the SP curve will ________.


A) in long-run equilibrium;shift upward
B) in disequilibrium,at an output level less than the natural rate of output;shift upward
C) in short-run equilibrium;shift upward
D) in short- and long-run equilibrium;be stable

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