Solved: Why would you expect the inflation rate to accelerate, Macroeconomics

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Why would you expect the inflation rate to accelerate

Question:

Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the "full employment" unemployment rate (NAIRU)? Explain your answer in a few sentences. What state of business cycles (such as recession, trough, recovery or boom) does the current US economy face, and why?

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Macroeconomics: Why would you expect the inflation rate to accelerate

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Macroeconomics: Why would you expect the inflation rate to accelerate

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