After an extended period of steady inflation at a constant rate,
A) people will anticipate inflation.
B) actual unemployment will approximate the natural rate of unemployment.
C) actual unemployment will be less than the natural rate of unemployment.
D) both a and b are true.

Question

Quizplus · Accepted Answer

After a period of steady inflation, people will anticipate inflation (A), and the economy will adjust such that actual unemployment approximates the natural rate of unemployment (B).

After an Extended Period of Steady Inflation at a Constant