According to the Central Bank Learning Story,if the central bank believes that the Phillips curve relationship is stable,it will choose a point at which real output will be
A) below trend and inflation will be lower than expected inflation.
B) below trend and inflation will be higher than expected inflation.
C) above trend and inflation will be lower than expected inflation.
D) above trend and inflation will be higher than expected inflation.
E) above trend and inflation will be at expected inflation.
Correct Answer:
Verified
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