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Suppose that inflation was expected to be 10% and instead it ended up being 15%. According to the expectations-augmented Phillips curve, what can you say

Suppose that inflation was expected to be 10% and instead it ended up being 15%. According to the expectations-augmented Phillips curve, what can you say about inflation rate and cyclical unemployment rate?

Both inflation rate and cyclical unemployment is positive

Inflation rate is negative and cyclical unemployment is positive

Both inflation rate and cyclical unemployment rate are negative

Inflation rate is positive and cyclical unemployment is negative

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