If inflation is greater than expected, then the unemployment rate is
a. above the natural rate. In the long run the short-run Phillips curve will shift right.
b. above the natural rate. In the long run the short-run Phillips curve will shift left.
c. below the natural rate. In the long run the short-run Phillips curve will shift right.
d. below the natural rate. In the long run the short-run Phillips curve will shift left.
c
You might also like to view...
In fact, several studies focused on Europe concluded that higher exchange rate volatility:
A) is associated with smaller price differentials. B) is associated with larger price differentials. C) often precedes a return to stability. D) promotes trade and cooperation among nations.
Define the production function. Discuss why the production function exhibits diminishing returns
What will be an ideal response?