The AD curve shifts to the right with an increase in taxes or a decrease in government purchases

Suppose that the unemployment rate equals 4.5 percent and that the natural unemployment rate is 5.5 percent. We can conclude that

A) the output gap is negative. B) the output gap equals zero. C) the output gap is positive. D) we have mismeasured the natural unemployment rate.

The following Phillips curve of would be consistent with the _____ model(s)

a. Keynesian. b. monetarist. c. monetarist and classical. d. classical. e. None of the above