If the Actual Unemployment Rate Is Less Than the Natural

question 143

Multiple Choice

If the actual unemployment rate is less than the natural rate of unemployment, there will be a tendency toward:

• A)​increased inflation and a leftward shift of the short-run Phillips curve.
• B)​decreased inflation and a rightward shift of the short-run Phillips curve.
• C)​increased inflation and a rightward shift of the short-run Phillips curve.
• D)​decreased inflation and a leftward shift of the short-run Phillips curve.