According to the Short Run Phillips Curve Model,if the Inflation

question 29

Multiple Choice

According to the short run Phillips Curve model,if the inflation rate is above the rate anticipated by the general public,then

• A) the unemployment rate will be equal to the non-inflation-accelerating rate of unemployment (NIARU)
• B) the unemployment rate will be at the natural rate
• C) the unemployment rate will probably be exceptionally low
• D) there will most likely be substantial cyclical unemployment in the economy
• E) an adverse aggregate supply shock has created both inflation and unemployment