According to Friedman and Phelps, When Is the Unemployment Rate

question 159

Multiple Choice

According to Friedman and Phelps, when is the unemployment rate above the natural rate?

• A) when actual inflation is greater than expected inflation
• B) when actual inflation is less than expected inflation
• C) when actual inflation equals expected inflation
• D) when actual inflation is high

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Definitions:

Time

A continuous progression of existence and events in the past, present, and future regarded as a whole.

Algebraic Expression

An expression consisting of numbers, variables, and operations but no equal signs.

Algebraic Expression

A mathematical phrase that can contain numbers, variables, and operation symbols but no equals sign.

Evaluate

The process of calculating the value of an expression or determining the outcome of a mathematical operation.