Use the Modern Expectational Phillips curve diagram below to answer the following question(s).
Figure 15-4

-Refer to Figure 15-4.According to the modern expectational Phillips curve,actual unemployment will generally fall below the natural rate of unemployment if

Question

Use the Modern Expectational Phillips curve diagram below to answer the following question(s).
Figure 15-4
 
-Refer to Figure 15-4.According to the modern expectational Phillips curve,actual unemployment will generally fall below the natural rate of unemployment if

Quizplus · Accepted Answer

If inflation exceeds what was anticipated by decision makers, it can lead to lower actual unemployment than the natural rate because firms and workers are caught off guard, leading to increased production and hiring.

Use the Modern Expectational Phillips Curve Diagram Below to Answer