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If Unemployment Is Below Its Natural Rate,what Happens to Move

Question 26

Multiple Choice

If unemployment is below its natural rate,what happens to move the economy to long-run equilibrium?


A) Inflation expectations rise which shifts the short-run Phillips curve to the right.
B) Inflation expectations rise which shifts the short-run Phillips curve to the left.
C) Inflation expectations fall which shifts the short-run Phillips curve to the right.
D) Inflation expectations fall which shifts the short-run Phillips curve to the left.

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