Question 32 (1 point) Figure 2 Inflation rate (percent per year) Long-run Philli

Question

Question 32 (1 point) Figure 2 Inflation rate (percent per year) Long-run Phillips curve 5.5% Short-run Philips curve 3.8% 5 Unemployment rate (percent) Refer to Figure 2. Suppose the economy is at point B in the figure above. Which of the following is true? O A) Expected inflation and actual inflation are the same. ( B) The natural rate of unemployment is 5%. O C) The economy is producing at potential ( D) The current unemployment rate is 5%. GDP. E) The expected rate of inflation is 5.5%. Save

Explanation / Answer

answer - e - as the expected rate of inflation is 5.5% The govt. will adapt expansionary policy for reducing the inflation

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