When the Actual Inflation Rate Exceeds the Expected Inflation Rate

Multiple Choice

When the actual inflation rate exceeds the expected inflation rate due to changes in aggregate demand:

A) ​Unemployment is below the natural rate of unemployment.
B) ​Unemployment is above the natural rate of unemployment.
C) ​Unemployment equals the natural rate of unemployment.
D) ​Unemployment could be above, equal to, or below the natural rate of unemployment.