Table 28.2.2 -Refer to Table 28.2.2.The Economy's Natural Unemployment Rate Is 4

Table 28.2.2

-Refer to Table 28.2.2.The economy's natural unemployment rate is 4 percent.Table 28.2.2 gives some points on the economy's short-run Phillips curve.When the unemployment rate is 4 percent ________.

A) actual inflation is greater than expected inflation
B) actual inflation is less than expected inflation
C) and the inflation rate is 6 percent a year, the short-run and long-run Phillips curves intersect
D) and the expected inflation rate is 8 percent a year, the short-run Phillips curve shifts downward
E) aggregate demand increases