According to the Modern Expectational Phillips Curve, Unemployment Will Temporarily

question 49

Multiple Choice

According to the modern expectational Phillips curve, unemployment will temporarily fall below the natural rate of unemployment when

• A) any inflation is present.
• B) inflation turns out to be lower than what people expected.
• C) inflation turns out to be higher than what people expected.
• D) inflation turns out to be equal to what people expected.

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Definitions:

Kilometer

A unit of length in the metric system, equal to 1,000 meters.

Physician

A healthcare professional who diagnoses and treats illnesses and injuries in patients.

Medication

substances used to diagnose, treat, cure, or prevent disease and alleviate symptoms.

Milligrams

A unit of mass or weight in the metric system, equal to one thousandth of a gram, commonly used to measure small quantities of material.