Multiple Choice
If the economy is at full employment, then the inflation rate
A) is equal to zero.
B) exceeds the expected inflation rate.
C) can be anywhere on a short-run Phillips curve.
D) is equal to the expected inflation rate.
E) is less than the expected inflation rate.
Correct Answer:
Verified
Related Questions
Q6: The natural unemployment rate
A)never changes.
B)always increases.
C)increases when
Q7: The short-run Phillips curve shows the relationship
Q8: If the Fed raises the inflation rate
Q9: --------------------is fixed when moving along the aggregate
