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Figure 28-2 -Refer to Figure 28-2. Suppose the Economy Is at Point

Question 82

Multiple Choice

Figure 28-2 Figure 28-2 -Refer to Figure 28-2. Suppose the economy is at point B in the figure above. Which of the following is true? A) The expected rate of inflation is 3%. B) The natural rate of unemployment is 3.8%. C) The current unemployment rate is 5%. D) The economy is producing at potential GDP. E) Expected inflation and actual inflation are the same.
-Refer to Figure 28-2. Suppose the economy is at point B in the figure above. Which of the following is true?

A) The expected rate of inflation is 3%.
B) The natural rate of unemployment is 3.8%.
C) The current unemployment rate is 5%.
D) The economy is producing at potential GDP.
E) Expected inflation and actual inflation are the same.

Correct Answer: