If Inflationary Expectations Are Stable and There Is No Current

question 58

Multiple Choice

If inflationary expectations are stable and there is no current inflation, the short-run Phillips curve will intersect the long-run Phillips curve at:

• A)​a 0 percent unemployment rate.
• B)​a 2 percent unemployment rate.
• C)​a 4 percent unemployment rate.
• D)​the natural rate of unemployment.

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Definitions:

Auscultating

The act of listening to the internal sounds of the body, typically with a stethoscope, for medical diagnosis.

Pyrogens

Substances that cause fever after being introduced or released into the body.

Femoral

Pertaining to the artery that lies adjacent to the femur.

Radial

Referring to the radial artery or pulse taken in the radial artery.