How does the break-even inflation rate differ from the expected inflation rate as measured in surveys?
A) They are very close to each other.
B) The break-even inflation rate varies less than the expected inflation rate from surveys.
C) The break-even inflation rate varies more than the expected inflation rate from surveys.
D) The break-even inflation rate is always several percentage points higher than the expected inflation rate from surveys.
C
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Economists argue that:
a. accounting costs consider all types of costs including implicit costs b. there is an opportunity cost associated with all decisions. c. economic decisions do not have opportunity costs but other decisions do. d. economic decisions should consider sunk costs
The short-run Phillips curve suggests that ____ rates of unemployment can be traded off for ____ rates of inflation
a. lower; higher b. greater; relatively high c. less; relatively low d. less; relatively high