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Suppose That the Current Price Level Is Equal to the Expected

Question 2

Multiple Choice

Suppose that the current price level is equal to the expected price level. Given this information, we know with certainty that:


A) the unemployment rate is equal to the natural rate of unemployment.
B) only the goods market is in equilibrium.
C) the goods market and financial markets are in equilibrium.
D) the unemployment rate is zero.
E) both the price level and the expected price level are equal to one.

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