2982EconomicsMedium
When actual inflation exceeds expected inflation?
AUnemployment is greater than the natural rate of unemployment
BUnemployment is less than the natural rate of unemployment
CUnemployment is equal to the natural rate of unemployment
DPeople will reduce their expectations of inflation in the future
Correct answer
B. Unemployment is less than the natural rate of unemployment
Explanation
The correct answer is Unemployment is less than the natural rate of unemployment.