Figure 17-4
-Refer to Figure 17-4. At point m, how do actual and expected inflation rates and unemployment rates compare?
A) The actual inflation rate exceeds the expected inflation rate and the actual unemployment rate exceeds the natural rate of unemployment.
B) The actual inflation rate exceeds the expected inflation rate and the actual unemployment rate is less than the natural rate of unemployment.
C) The actual inflation rate is less than the expected inflation rate and the actual unemployment rate exceeds the natural rate of unemployment.
D) The actual inflation rate is less than the expected inflation rate and the actual unemployment rate is less than the natural rate of unemployment.

Question

Figure 17-4 
-Refer to Figure 17-4. At point m, how do actual and expected inflation rates and unemployment rates compare?
A) The actual inflation rate exceeds the expected inflation rate and the actual unemployment rate exceeds the natural rate of unemployment. 
B) The actual inflation rate exceeds the expected inflation rate and the actual unemployment rate is less than the natural rate of unemployment. 
C) The actual inflation rate is less than the expected inflation rate and the actual unemployment rate exceeds the natural rate of unemployment. 
D) The actual inflation rate is less than the expected inflation rate and the actual unemployment rate is less than the natural rate of unemployment.

Quizplus · Accepted Answer

At point m, the actual inflation rate is less than the expected inflation rate, leading to higher unemployment than the natural rate.

Figure 17-4 -Refer to Figure 17-4. at Point M, How Do Actual