Based on the Theory of the Expectations-Augmented Phillips Curve,if the Expected

question 67

Multiple Choice

Based on the theory of the expectations-augmented Phillips curve,if the expected inflation rate is 2%,the short-run Phillips curve will

• A)have a kink at an inflation rate of 2%.
• B)be the same as the long-run Phillips curve.
• C)intersect the long-run Phillips curve at the natural unemployment rate, when the inflation rate is 2%.
• D)be horizontal at an expected inflation rate of 2%.

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