Multiple Choice
If the level of unemployment is above the natural rate of unemployment,it would be expected that:
A) the short-run Phillips curve will shift leftward, as inflationary expectations adjust.
B) the inflation rate will increase.
C) the short-run Phillips curve will shift rightward, as inflationary expectations adjust.
D) both b. and c.
Correct Answer:
Verified
Correct Answer:
Verified
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