Figure 8-1 -Everywhere to the Left of the Long-Run Phillips Curve as Phillips

question 20

Multiple Choice

Figure 8-1
-Everywhere to the left of the long-run Phillips Curve as in the figure above

• A) actual inflation is less than expected inflation and the expected inflation rate will be reduced.
• B) actual inflation is less than expected inflation and the expected inflation rate will be raised.
• C) actual inflation is greater than expected inflation and the expected inflation rate will be raised.
• D) actual inflation is greater than expected inflation and the expected inflation rate will be reduced.

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