If the economy is at the point where the short-run Phillips curve intersects the long-run Phillips curve: 0 unemployment equals the natural rate and expected inflation is greater than actual inflation. 0 unemployment is below the natural rate and expected inflation equals actual inflation. 0 unemployment equals the natural rate and expected inflation equals actual inflation. 0 unemployment is above the natural rate and expected inflation equals actual inflation.

If the economy is at the point where the short-run Phillips curve intersects the long-run Phillips curve: 0 unemployment equals the natural rate and expected inflation is greater than actual inflation. 0 unemployment is below the natural rate and expected inflation equals actual inflation. 0 unemployment equals the natural rate and expected inflation equals actual inflation. 0 unemployment is above the natural rate and expected inflation equals actual inflation.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter35: The Short-Run Trade-off Between Inflation And Unemployment

Section: Chapter Questions

Problem 3QCMC

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