Study the diagram below. What is the short run unemployment rate if inflation is expected to be 8% and is actually 12%? You do not need to include the % sign in your answer. Inflation Rate (%) LR Phillips Curve 14 12 10 12% expected inflation 6. 8% expected inflation 4% expocted inflation (0,0) 8 10 12 14 Unemployment Rate (%) Short-run and Long-run Phillips Curves

Study the diagram below. What is the short run unemployment rate if inflation is expected to be 8% and is actually 12%? You do not need to include the % sign in your answer. Inflation Rate (%) LR Phillips Curve 14 12 10 12% expected inflation 6. 8% expected inflation 4% expocted inflation (0,0) 8 10 12 14 Unemployment Rate (%) Short-run and Long-run Phillips Curves

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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Using the inflation-unemployment version of the Phillips curve with adaptive expectations, ifaggregate demand increasesA)workers will realize that inflation has changed in the long run but not in the short run.B)the SRPC will immediately shift to the right as workers expect higher pricesC)workers will mistakenly work less, resulting in a decrease in inflation and increase inunemploymentD)actual inflation will be less than expected inflation, resulting in workers mistakenly workingmore and unemployment falling.
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