When the actual rate of inflation exceeds the expected rate
A) the unemployment rate will temporarily rise.
B) firms will experience rising profits and thus increase their employment.
C) the actual rate of inflation will fall.
D) nominal wages will decline.
Correct Answer:
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Q25: Disinflation occurs when
A)the price level is falling.
B)investment
Q26: The traditional Phillips Curve suggests that, if
Q27: An adverse aggregate supply shock
A)automatically shifts the
Q28: Suppose that the Consumer Price Index for
Q30: Which of the following allegedly contributed to
Q31: Which of the following is a true
Q32: Stagflation refers to
A)an increase in inflation accompanied
Q33: The last few years of the 1990s
Q34: In the last half of the 1990s,
Q61: An adverse aggregate supply shock could result
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