According to the open-economy Phillips curve model,other things equal,the unemployment rate rises in all the following situations except when:
A) actual inflation rises.
B) expected inflation rises.
C) the country's real exchange rate falls.
D) the natural unemployment rate rises.

Question

Quizplus · Accepted Answer

When actual inflation rises, it can lead to a temporary decrease in unemployment due to the short-run trade-off between inflation and unemployment described by the Phillips curve.

According to the Open-Economy Phillips Curve Model,other Things Equal,the Unemployment