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

Question 86

Multiple Choice

Figure 28-2 Figure 28-2 -Refer to Figure 28-2. Suppose the economy is at point A in the figure above. Which of the following is true? A) The expected rate of inflation is 5.5%. B) The current unemployment rate is equal to the natural rate of unemployment. C) The current unemployment rate is 3.8%. D) Actual inflation is 1%. E) The economy will move from A to B.
-Refer to Figure 28-2. Suppose the economy is at point A in the figure above. Which of the following is true?

A) The expected rate of inflation is 5.5%.
B) The current unemployment rate is equal to the natural rate of unemployment.
C) The current unemployment rate is 3.8%.
D) Actual inflation is 1%.
E) The economy will move from A to B.

Correct Answer: