Milton Friedman argued that the economy is not in long-run equilibrium if the expected inflation rate __________ the actual inflation rate.

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Milton Friedman, a prominent economist, argued that the economy is in long-run equilibrium only when the expected inflation rate equals the actual inflation rate. Therefore, if the expected inflation rate is either less than or greater than the actual inflation rate, the economy is not in long-run equilibrium. This is because discrepancies between expected and actual inflation rates can lead to adjustments in economic behavior, affecting savings, investments, and consumption patterns until expectations align with reality.

Milton Friedman Argued That the Economy Is Not in Long-Run