20. Tradeoffs Between Inflation and Unemployment

Suppose that an economy has been experiencing actual inflation that is equal to expected inflation. This economy would most likely be operating at point:

Suppose that an economy suddenly experiences actual inflation that is below the expected level of inflation. This will likely cause short-run movement:

Suppose an economy has been experiencing actual inflation below expected inflation. When this economy transitions to the long run, expected inflation will become equal to actual inflation. This will shift the _______________ causing movement from _______.