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If Inflationary Expectations Are Stable and There Is No Current

Question 58

Multiple Choice

If inflationary expectations are stable and there is no current inflation, the short-run Phillips curve will intersect the long-run Phillips curve at:


A) ​a 0 percent unemployment rate.
B) ​a 2 percent unemployment rate.
C) ​a 4 percent unemployment rate.
D) ​the natural rate of unemployment.

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