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Using the Frieman-Phelps expectations-augmented Phillips curve, if actual and expected inflation are equal to each other, then A) workers are correctly forecasting inflation and the
Using the Frieman-Phelps expectations-augmented Phillips curve, if actual and expected inflation are equal to each other, then A) workers are correctly forecasting inflation and the economy is in long run equilibrium B) the policymaker needs to pursue expansionary policy to create more output. C) in the long run workers will adjust their expectations, resulting in a business cycle in the long run. D) the economy is in an expansion above the natural rate of output.
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