If the economy is producing at potential GDP,
A) unemployment is at its natural rate.
B) the Phillips curve must be positively sloped.
C) the short-run aggregate supply curve must be vertical.
D) inflation in the economy is at its natural rate.
E) expectations of inflation must be accurate.
Correct Answer:
Verified
Q86: A decrease in expected inflation will
A)reduce real
Q87: When unemployment is below its natural rate,
Q88: What can the Bank of Canada do
Q89: Where does the short-run Phillips curve intersect
Q90: What is the NAIRU?
A)the natural accelerating inflation
Q92: The long-run aggregate supply curve is _,
Q93: Growth in aggregate demand will
A)cause deflation.
B)increase unemployment.
C)move
Q94: The long-run Phillips curve is _ than
Q95: Figure 13.2 Q96: Figure 13.2 
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