Suppose that inflation was expected to be 10% and instead it ended up being 15%. According to
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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 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
Related Book For
Macroeconomics
ISBN: 978-0321675606
6th Canadian Edition
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
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