When there is an abrupt increase in the rate of inflation,
A) the actual rate of inflation will tend to fall below the natural rate.
B) the actual rate of inflation will tend to rise above the natural rate.
C) the actual and natural rate of inflation will generally be equal.
D) the natural rate of unemployment will tend to rise.

Question

Quizplus · Accepted Answer

The Answer of When there is an abrupt increase in the rate of inflation,
A) the actual rate of inflation will tend to fall below the natural rate.
B) the actual rate of inflation will tend to rise above the natural rate.
C) the actual and natural rate of inflation will generally be equal.
D) the natural rate of unemployment will tend to rise.

When There Is an Abrupt Increase in the Rate of Inflation