Figure 28-4
-Refer to Figure 28-4.Consider the Phillips curves shown in the above graph. We can conclude from this graph that
A) the natural rate of unemployment in this economy is 5.5 percent.
B) the expected rate of inflation in this economy is 10 percent.
C) ceteris paribus, a fall in the rate of inflation to 5 percent will increase unemployment to 7.5 percent in the short run.
D) All of the above are correct.
Correct Answer:
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Q37: If the long-run aggregate supply curve is
Q42: Figure 28-2 Q44: A decrease in cyclical unemployment will Q47: Figure 28-2 Q103: An increase in the expected inflation rate Q104: If expected inflation falls,the long-run Phillips curve Q105: In the 1960s,many economists and policy makers Q110: Ceteris paribus,an increase in the current or Q115: The expansionary monetary and fiscal policies of Q116: Where does the short-run Phillips curve intersect
A) shift
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