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-An Economy's Natural Unemployment Rate Is 4 Percent

Question 50

Multiple Choice

-An economy's natural unemployment rate is 4 percent. The table above 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) actual inflation is less than expected inflation. C) and the inflation rate is 6 percent a year, the short-run and long-run Phillips curves intersect. D) and the expected inflation rate is 8 percent a year, the short-run Phillips curve shifts downward.
-An economy's natural unemployment rate is 4 percent. The table above 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) actual inflation is less than expected inflation.
C) and the inflation rate is 6 percent a year, the short-run and long-run Phillips curves intersect.
D) and the expected inflation rate is 8 percent a year, the short-run Phillips curve shifts downward.

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