If the Actual Inflation Rate Exceeds the Expected Inflation Rate

question 68

Multiple Choice

If the actual inflation rate exceeds the expected inflation rate,

• A)the economy is on the long-run Phillips curve
• B)unemployment exceeds the natural rate
• C)maintaining the existing unemployment rate will require increasing inflation in the long run
• D)the actual rate will tend to fall toward the expected rate
• E)unemployment will tend to decrease in the long run

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