If the Unemployment Rate Is Below the Natural Rate, Then

question 124

Multiple Choice

If the unemployment rate is below the natural rate, then

• A)inflation is less than expected.As inflation expectations are revised the short-run Phillips curve will shift right.
• B)inflation is less than expected.As inflation expectations are revised the short-run Phillips curve will shift left.
• C)inflation is greater than expected.As inflation expectations are revised the short-run Phillips curve will shift left.
• D)inflation is greater than expected.As inflation expectations are revised the short-run Phillips curve will shift right.

---

Definitions:

Temporary Change

A modification or alteration that is not permanent, often expected to revert back to the original state after a certain period or under specific conditions.

Organism's Behavior

The observable actions or reactions of living entities in response to external or internal stimuli.

Systematic Desensitization

A behavior therapy used to reduce phobic and anxiety responses through gradual exposure to the feared stimulus, paired with relaxation exercises.

Complex Behaviors

Actions or reactions that involve a combination of skills and attributes such as emotional, cognitive, and social components, resulting in intricate or complicated responses to stimuli.