Along the Short-Run Phillips Curve, If the Actual Unemployment Rate

question 64

Multiple Choice

Along the short-run Phillips curve, if the actual unemployment rate falls below the natural unemployment rate, the

• A)actual inflation rate will be equal to the expected inflation rate.
• B)actual inflation rate will be greater than the expected inflation rate.
• C)actual inflation rate will be less than the expected inflation rate.
• D)actual inflation rate may be greater than, equal to, or less than the expected inflation rate
• E)expected inflation rate will fall to zero.

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Definitions:

Equity

The value of an owner's interest in a property or business, after all debts associated with that property or business are paid off.

EBIT

EBIT, which stands for Earnings Before Interest and Taxes, calculates a company's earnings without considering income tax and interest expenses.

Ending Equity

The value remaining for shareholders after subtracting liabilities from assets, evaluated at the end of an accounting period.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.