The Inflation-Expectations-Augmented Phillips Curve Implies That

question 1

Multiple Choice

The inflation-expectations-augmented Phillips curve implies that

• A)unemployment is at its natural rate when expected inflation is equal to actual inflation
• B)stagflation occurs when expected inflation is below actual inflation
• C)stagflation occurs when the short-run Phillips curve shifts left
• D)the inflation rate is equal to the real output growth rate plus the monetary growth rate
• E)the expected inflation rate is always equal to the monetary growth rate

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