If the unemployment rate is below the natural rate, then
a. inflation is less than expected. As inflation expectations are revised the short-run Phillips curve will shift right.
b. inflation is less than expected. As inflation expectations are revised the short-run Phillips curve will shift left.
c. inflation is greater than expected. As inflation expectations are revised the short-run Phillips curve will shift left.
d. inflation is greater than expected. As inflation expectations are revised the short-run Phillips curve will shift right.
d
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If an economy maintains a small rate of growth for a long period of time, then the size of the economy
A. will stay nearly constant. B. can increase by a large amount. C. can never double. D. can only increase by a small amount.
The average fixed cost curve
A) is always positively sloped. B) is U-shaped. C) has an upside-down U shape. D) is always negatively sloped. E) is horizontal.
If the price of salt increases and the quantity demanded does not change, then
A) the price elasticity of demand is equal to zero. B) demand is perfectly inelastic. C) the demand curve for salt is horizontal. D) Both answers A and B are correct.
Use the data in the table above and suppose that labor is the only variable factor of production. If each worker is paid $42.00 per day, what is the average variable cost to Decent Donuts of producing 122 dozen donuts per day?
A) $1.91 B) $2.16 C) $2.41 D) $3.06