In the Short Run,as Output Rises Above Potential ________

question 4

Multiple Choice

In the short run,as output rises above potential ________.

• A)inflation will fall from its current level which explains the upward-sloping nature of the Phillips curve
• B)inflation will rise from its current level which explains the upward-sloping nature of the aggregate supply curve
• C)unemployment will rise above the natural rate which explains the upward-sloping nature of both the Phillips curve and the AS curve
• D)all of the above
• E)none of the above

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