In the Diagram Below,the Economy Is Initially in Long-Run Equilibrium

question 17

Multiple Choice

In the diagram below,the economy is initially in long-run equilibrium at A,with actual unemployment equal to ___________,natural rate of unemployment equal to 6%,actual inflation equal to ___________ and the public's expected inflation equal to ___________.

• A) 6%;4%;4%
• B) 8%;4%;4%
• C) 6%;4%;3%
• D) 6%;3%;3%
• E) 6%;3%;4%

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Definitions:

Harvest

The process of gathering ripe crops from the fields, or the period during which this activity occurs.

Squirrel Populations

groups of squirrels living in a particular area, whose dynamics and demographics can be studied for ecological and conservation purposes.

Foxes

small to medium-sized, omnivorous mammals belonging to several genera of the family Canidae.

Slash And Burn

A method of agriculture where vegetation is cut down and burned to clear land for temporary cultivation.