According to Friedman and Phelps's Analysis of the Phillips Curve

question 116

Multiple Choice

According to Friedman and Phelps's analysis of the Phillips curve,

• A)the unemployment rate will be below its natural rate whenever inflation is negative.
• B)the unemployment rate will be below its natural rate whenever inflation is positive.
• C)the unemployment rate will be below its natural rate only if inflation is less than expected.
• D)the unemployment rate will be below its natural rate only if inflation is greater than expected.

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