When the current price level is equal to the expected price level,we know that
A)the unemployment rate is zero.
B)the goods market and financial markets are in equilibrium.
C)the output is equal to the natural level of output.
D)the money market is in equilibrium.
E)none of the above

Question

Quizplus · Accepted Answer

When the current price level equals the expected price level, it typically indicates that the economy is operating at its natural level of output, where actual output equals potential output, and unemployment is at its natural rate.

When the Current Price Level Is Equal to the Expected