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When the Expected Inflation Rate Is 5 Percent,we Know to Draw

Question 182

Multiple Choice

When the expected inflation rate is 5 percent,we know to draw the short-run Phillips Curve through the

A) horizontal axis at Y = 105.
B) horizontal axis at P = 1.05.
C) long-run Phillips Curve at P = 1.05.
D) long-run Phillips Curve at p = 5.

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