If the actual inflation rate exceeds the expected inflation rate, then:
a. the economy is operating along the long-run Phillips curve
b. unemployment exceeds the natural rate.
c. maintaining the existing unemployment rate will require increasing inflation in the long run.
d. the actual rate will tend to fall toward the expected rate.
e. unemployment will tend to decrease in the long run.
c
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According to this Application, the Fed started paying interest to banks on reserves. All else equal, this would tend to ________ on a bank's balance sheet
A) increase reserves B) increase loans C) increase deposits D) all of the above
A particular good is not scarce when
A) everyone is able to purchase as much of the good as they wish to purchase. B) it is available in large enough quantities to meet everyone's needs. C) no one must sacrifice anything to obtain more of the good. D) there is a surplus of the good.