Which one of the following is not illustrated by the Phillips curve?
A) Given any particular rate of unemployment, there will be some particular level of inflation.
B) If the unemployment rate is above its natural rate, then we would expect a rapid increase in wages and
Prices.
C) If the rate of unemployment is below the natural rate of unemployment, then we would expect wages and prices to increase rapidly.
D) If the unemployment rate is equal to the natural rate, then there will be little, if any, pressure on inflation to rise or fall.
Correct Answer:
Verified
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