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Which of the following is true according to adaptive expectations theory if the actual rate of inflation was 5 percent in the previous year? a
Which of the following is true according to adaptive expectations theory if the actual rate of inflation was percent in the previous year?
a Workers expect the rate of inflation in the current year to be less than percent, and this shifts the shortrun Phillips curve leftward.
b Workers expect the rate of inflation in the current year to be percent, and this shifts the shortrun Phillips curve leftward.
c Workers expect the rate of inflation in the current year to be percent, and this shifts the shortrun Phillips curve rightward.
d Workers expect the rate of inflation in the current year to be less than percent, and this shifts the shortrun Phillips curve rightward.
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