According to Friedman,in which of the following situations is the economy in long-run equilibrium?
A) The average inflation rate over the past five years is 2 percent and the expected inflation rate is 2 percent.
B) The expected economic growth rate is 3 percent and the actual inflation rate is 3 percent.
C) The expected economic growth rate is 2 percent and the expected inflation rate is 2 percent.
D) The expected inflation rate is 3 percent and the actual inflation rate is 3 percent.
Correct Answer:
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