Question
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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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
6th Canadian Edition
321675606, 978-0321675606
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