Multiple Choice
If the unemployment rate is below the natural rate, then
A) inflation is less than expected.As inflation expectations are revised the short-run Phillips curve will shift right.
B) inflation is less than expected.As inflation expectations are revised the short-run Phillips curve will shift left.
C) inflation is greater than expected.As inflation expectations are revised the short-run Phillips curve will shift left.
D) inflation is greater than expected.As inflation expectations are revised the short-run Phillips curve will shift right.
Correct Answer:
Verified
Correct Answer:
Verified
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