Figure 16-4
-Refer to the 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 the 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, and the actual rate of unemployment is less than the natural rate of unemployment, which typically occurs when the economy is operating above its potential output.

Figure 16-4 -Refer to the Figure 16-4.At Point B,how Do Actual and Do