If the actual unemployment rate is below the natural rate of unemployment, it would be expected that :

Question

TuteeHUB · Accepted Answer

the Phillips curve would shift to the left

TuteeHUB · Answer

the rate of inflation would increase

TuteeHUB · Answer

the Phillips curve would shift to the left

TuteeHUB · Answer

wages would fall

TuteeHUB · Answer

the natural rate of unemployment would fall

1.	If the actual unemployment rate is below the natural rate of unemployment, it would be expected that :
A.	the rate of inflation would increase
B.	the Phillips curve would shift to the left
C.	wages would fall
D.	the natural rate of unemployment would fall
Answer» B. the Phillips curve would shift to the left

Discussion