Multiple Choice
If the short-run Phillips curves are nonlinear,with each Phillips curve flatter in the negative inflation range
I: maintaining zero inflation on average forces the average unemployment rate to exceed the natural rate;
II: forcing the unemployment rate to equal the natural rate must result in ever-accelerating inflation.
A) I is true; II is not.
B) II is true; I is not.
C) Both I and II are true.
D) Neither I nor II is true.
Correct Answer:
Verified
Correct Answer:
Verified
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