Suppose that in a given country, the line of best fit approximates the Phillips curve shown here. When the output gap is 4%:

A)there is insufficient demand.
B)inflation falls below expected inflation.
C)the output gap is positive.
D)the output gap is negative.

Question

Suppose that in a given country, the line of best fit approximates the Phillips curve shown here. When the output gap is 4%:

A)there is insufficient demand. 
B)inflation falls below expected inflation. 
C)the output gap is positive. 
D)the output gap is negative.

Quizplus · Accepted Answer

The Answer of Suppose that in a given country, the line of best fit approximates the Phillips curve shown here. When the output gap is 4%:

A)there is insufficient demand. 
B)inflation falls below expected inflation. 
C)the output gap is positive. 
D)the output gap is negative.

Suppose That in a Given Country, the Line of Best