If People Have Adaptive Expectations, the Phillips Curve Model Implies

question 16

Multiple Choice

If people have adaptive expectations, the Phillips curve model implies that whenever the actual rate of inflation is higher than the expected rate of inflation:

• A)​unemployment will exceed its natural rate.
• B)​unemployment will be less than its natural rate.
• C)​unemployment will increase.
• D)​unemployment will decrease.

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Definitions:

Trochlea

A smooth, grooved articular process shaped like a pulley, found in certain joints such as the elbow, facilitating movement.

Articulates

Relates to joints or articulation points in the skeleton where two or more bones come together, allowing for movement.

Olecranon Process

The bony prominence at the elbow, on the upper end of the ulna, that forms the point of the elbow.

Elbow

The elbow is a joint connecting the forearm to the upper arm, allowing for the bending and straightening of the arm.