If unemployment is above its natural rate, what happens to move the economy to long-run equilibrium?
A) Inflation expectations rise, which shifts the short-run Phillips curve to the right.
B) Inflation expectations rise, which shifts the short-run Phillips curve to the left.
C) Inflation expectations fall, which shifts the short-run Phillips curve to the right.
D) Inflation expectations fall, which shifts the short-run Phillips curve to the left.
Correct Answer:
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A)unemployment to
Q192: Figure 35-5 Q193: Figure 35-5 Q195: If inflation expectations rise, the short-run Phillips Q196: If a central bank increases the money Q197: A politician blames the Federal Reserve for Q198: Figure 35-5 Q199: An adverse supply shock causes inflation to Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)rise
