If Unemployment Is Below Its Natural Rate,what Happens to Move

question 26

Multiple Choice

If unemployment is below its natural rate,what happens to move the economy to long-run equilibrium?

• A)Inflation expectations rise which shifts the short-run Phillips curve to the right.
• B)Inflation expectations rise which shifts the short-run Phillips curve to the left.
• C)Inflation expectations fall which shifts the short-run Phillips curve to the right.
• D)Inflation expectations fall which shifts the short-run Phillips curve to the left.

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Definitions:

Receivable

Funds that customers owe to a business for products or services already provided but not yet compensated for.

Bad Debt Reserve

An account set aside by a business to cover unpaid debts that are unlikely to be recovered.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Deductions

Items of expenditure that the tax code allows taxpayers to deduct from income to arrive at taxable income.