If the Economy Is at Potential Output, Actual Inflation

question 47

Multiple Choice

If the economy is at potential output, actual inflation

• A) is greater than expected inflation.
• B) equals expected inflation.
• C) is less than expected inflation.
• D) equals the natural rate of unemployment.

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Definitions:

Trumpet

A brass musical instrument with a flared bell and bright, penetrating tone, played by blowing into a mouthpiece.

Trumpet

A brass wind instrument with a flared bell and a bright, penetrating tone, played by blowing into a small mouthpiece.

Mouthpiece

A part of an instrument or device that is designed to be placed in or near the mouth.

Pyrotechnics

The art of making or displaying fireworks; also used metaphorically to describe impressive displays or performances.