The Original Phillips Curve Implied or Assumed That

question 52

Multiple Choice

The original Phillips curve implied or assumed that:

• A) the actual and expected rates of inflation would always be unequal.
• B) a lower rate of unemployment causes a decreasing rate of inflation.
• C) the expected inflation rate is equal to last year's inflation rate.
• D) the markup over labour costs was zero.
• E) the expected rate of inflation would be zero.