If the economy is at the point where the short-run Phillips curve intersects the long-run Phillips curve,
A) unemployment equals the natural rate and expected inflation equals actual inflation.
B) unemployment is above the natural rate and expected inflation equals actual inflation.
C) unemployment equals the natural rate and expected inflation is greater than actual inflation.
D) there is no unemployment or inflation.
Correct Answer:
Verified
Q166: A movement to the left along a
Q167: Suppose expected inflation and actual inflation are
Q168: Figure 35-3 Q169: Figure 35-4 Q170: If the minimum wage increased, then at Q172: A change in expected inflation shifts Q173: Other things the same, if there is Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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A)the short-run