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

Question 96

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Figure 28-2 Figure 28-2 -Refer to Figure 28-2. Suppose the economy is at point C in the figure above. If workers adjust their expectations of inflation, which of the following will be true? A) The short-run Phillips curve will shift to the right. B) The short-run Phillips curve will shift to the left. C) The economy will move from C to A. D) Workers and firms expect inflation to be 1%. E) The natural rate of unemployment is 6%.
-Refer to Figure 28-2. Suppose the economy is at point C in the figure above. If workers adjust their expectations of inflation, which of the following will be true?


A) The short-run Phillips curve will shift to the right.
B) The short-run Phillips curve will shift to the left.
C) The economy will move from C to A.
D) Workers and firms expect inflation to be 1%.
E) The natural rate of unemployment is 6%.

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