If the level of unemployment is below the natural rate of unemployment, it would be expected that:
a. the short-run Phillips curve will shift leftward, as inflationary expectations adjust.
b. the inflation rate will increase
c. the inflation rate will decrease.
d. the long-run Phillips curve will shift rightward, as inflationary expectations adjust.
b. the inflation rate will increase
You might also like to view...
An MP3 player in Singapore costs 200 Singaporean dollars. In the U.S. it costs 100 US dollars. What is the nominal exchange rate if purchasing-power parity holds?
a. 2.0 b. 1.0 c. .50 d. None of the above is correct.
How does the owner of a sole proprietorship relate to the business?
A) The owner and the business are separate legal entities. B) The owner and the business are not separate legal entities. C) The assets of the owner are considered separate from the assets of the business. D) None of these describe the legal relationship of the owner to the business.