Use the table below to answer the following questions.
Table 12.4.2
- The economy's natural unemployment rate is 4 percent.Table 12.4.2 gives some points on the economy's short- run Phillips curve.When the unemployment rate is 4 percent,
A)actual inflation is greater than expected inflation.
B)aggregate demand increases.
C)and the inflation rate is 6 percent a year, the short- run and long- run Phillips curves intersect.
D)actual inflation is less than expected inflation.
E)and the expected inflation rate is 8 percent a year, the short- run Phillips curve shifts downward.

Question

Use the table below to answer the following questions.
Table 12.4.2
- The economy's natural unemployment rate is 4 percent.Table 12.4.2 gives some points on the economy's short- run Phillips curve.When the unemployment rate is 4 percent,
A)actual inflation is greater than expected inflation. 
B)aggregate demand increases. 
C)and the inflation rate is 6 percent a year, the short- run and long- run Phillips curves intersect. 
D)actual inflation is less than expected inflation. 
E)and the expected inflation rate is 8 percent a year, the short- run Phillips curve shifts downward.

Quizplus · Accepted Answer

The Answer of Use the table below to answer the following questions.
Table 12.4.2
- The economy's natural unemployment rate is 4 percent.Table 12.4.2 gives some points on the economy's short- run Phillips curve.When the unemployment rate is 4 percent,
A)actual inflation is greater than expected inflation. 
B)aggregate demand increases. 
C)and the inflation rate is 6 percent a year, the short- run and long- run Phillips curves intersect. 
D)actual inflation is less than expected inflation. 
E)and the expected inflation rate is 8 percent a year, the short- run Phillips curve shifts downward.

Use the Table Below to Answer the Following Questions