Suppose that the expected inflation rate is 12 percent and the unemployment rate is 5 percent. If the expected inflation rate increases to 13 percent, then
A) the short-run Phillips curve will shift upward.
B) the short-run Phillips curve will shift downward.
C) there will be a movement along the short-run Phillips curve.
D) the natural unemployment rate will rise.
Correct Answer:
Verified
Q281: If the unemployment rate initially equals its
Q282: The Cleveland Federal Reserve Bank's estimate of
Q283: The long-run Phillips curve is
A) horizontal at
Q284: Along the long-run Phillips curve
A) actual inflation
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