Use the Figure Below to Answer the Following Question(s)

question 67

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 15-2
-According to the modern expectational Phillips curve illustrated in Figure 15-2, unemployment will temporarily rise above the natural rate of unemployment when

• A)inflation turns out to be lower than what people expected.
• B)inflation turns out to be higher than what people expected.
• C)inflation turns out to be equal to what people expected.
• D)all of the above are true.

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