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Using the inflation-unemployment version of the Phillips curve with adaptive expectations, if aggregate demand increases A) workers will realize that inflation has changed in the
Using the inflation-unemployment version of the Phillips curve with adaptive expectations, if aggregate demand increases A) workers will realize that inflation has changed in the long run but not in the short run. B) the SRPC will immediately shift to the right as workers expect higher prices C) workers will mistakenly work less, resulting in a decrease in inflation and increase in unemployment D) actual inflation will be less than expected inflation, resulting in workers mistakenly working more and unemployment falling.
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