Consider the following Phillips curve diagram:
For the case where the economy is at Point A,Point B,or Point C,explain:
(a)whether actual inflation is above or below expected inflation (What is each exactly?)
(b)the likely shift in the short-run Phillips curve
(c)the likely change in unemployment

Question

Consider the following Phillips curve diagram:
  For the case where the economy is at Point A,Point B,or Point C,explain:
(a)whether actual inflation is above or below expected inflation (What is each exactly?)
(b)the likely shift in the short-run Phillips curve
(c)the likely change in unemployment

Quizplus · Accepted Answer

The Answer of Consider the following Phillips curve diagram:
  For the case where the economy is at Point A,Point B,or Point C,explain:
(a)whether actual inflation is above or below expected inflation (What is each exactly?)
(b)the likely shift in the short-run Phillips curve
(c)the likely change in unemployment

Consider the Following Phillips Curve Diagram