Let us assume that the unemployment rate equals the equilibrium unemployment rate. Which of the following BEST describes the what we can expect about the interest rate, and the inflation rate. Group of answer choices   Interest rate equals natural interest rate, and inflation rate is zero. The inflation rate is zero and so the real interest rate equals nominal interest rate. Interest rate equals natural interest rate, and inflation rate is at its expected level.   which is correct?

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Chapter1: Making Economics Decisions
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Let us assume that the unemployment rate equals the equilibrium unemployment rate.

Which of the following BEST describes the what we can expect about the interest rate, and the inflation rate.

Group of answer choices
 
Interest rate equals natural interest rate, and inflation rate is zero.
The inflation rate is zero and so the real interest rate equals nominal interest rate.
Interest rate equals natural interest rate, and inflation rate is at its expected level.
 
which is correct?
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