Use the Table Below to Answer the Following Questions

question 67

Multiple Choice

Use the table below to answer the following questions.
Table 28.4.2

-The economy's natural unemployment rate is 4 percent. Table 28.4.2 gives some points on the economy's short-run Phillips curve. When the unemployment rate is 4 percent,

• A)actual inflation is greater than expected inflation.
• B)actual inflation is less than expected inflation.
• C)and the inflation rate is 6 percent a year, the short-run and long-run Phillips curves intersect.
• D)and the expected inflation rate is 8 percent a year, the short-run Phillips curve shifts downward.
• E)aggregate demand increases.

---

Definitions:

Research Development

The systematic activity combining both basic and applied research, aimed at discovering solutions to problems or creating new goods and knowledge.

Fixed Overhead Rate

A predetermined rate used to assign fixed manufacturing overhead costs to products, typically based on a standard activity level.

Volume Variance

A deviation in manufacturing or procurement costs that arises when the actual volume of production differs from the expected volume.

Productive Capacity

Productive capacity refers to the maximum output a system, facility, or economy can achieve under ideal conditions over a specific time period.