f the actual unemployment rate falls below the natural unemployment rate, how does the actual inflation rate change? The actual inflation rate ________. A. doesn't change, but the short-run Phillips curve shifts leftward B. rises up along the short-run Phillips curve C. doesn't change, but the expected inflation rate rises D. rises and the natural unemployment rate falls
f the actual unemployment rate falls below the natural unemployment rate, how does the actual inflation rate change? The actual inflation rate ________. A. doesn't change, but the short-run Phillips curve shifts leftward B. rises up along the short-run Phillips curve C. doesn't change, but the expected inflation rate rises D. rises and the natural unemployment rate falls
Chapter17: The Philips Curve And Expetactions Theory
Section: Chapter Questions
Problem 2SQ
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If the actual unemployment rate falls below the natural unemployment rate, how does the actual inflation rate change?
The actual inflation rate ________.
A.
doesn't change, but the short-run Phillips curve shifts leftward
B.
rises up along the short-run Phillips curve
C.
doesn't change, but the expected inflation rate rises
D.
rises and the natural unemployment rate falls
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