Figure 16-4
-Refer to Figure 16-4. At point b, how do actual and expected inflation rates and unemployment rates compare?
A)The actual inflation rate is less than the expected inflation rate, and the actual rate of unemployment exceeds the natural rate of unemployment.
B)The actual inflation rate is greater than the expected inflation rate, and the actual rate of unemployment exceeds the natural rate of unemployment.
C)The actual inflation rate is less than the expected inflation rate, and the actual rate of unemployment is less than the natural rate of unemployment.
D)The actual inflation rate is greater than the expected inflation rate, and the actual rate of unemployment is less than the natural rate of unemployment.

Question

Figure 16-4 
-Refer to Figure 16-4. At point b, how do actual and expected inflation rates and unemployment rates compare?
A)The actual inflation rate is less than the expected inflation rate, and the actual rate of unemployment exceeds the natural rate of unemployment. 
B)The actual inflation rate is greater than the expected inflation rate, and the actual rate of unemployment exceeds the natural rate of unemployment. 
C)The actual inflation rate is less than the expected inflation rate, and the actual rate of unemployment is less than the natural rate of unemployment. 
D)The actual inflation rate is greater than the expected inflation rate, and the actual rate of unemployment is less than the natural rate of unemployment.

Quizplus · Accepted Answer

At point b, the actual inflation rate is greater than the expected inflation rate, leading to a lower actual rate of unemployment compared to the natural rate of unemployment.

Figure 16-4 -Refer to Figure 16-4. at Point B, How Do Actual