Exam 8: The Phillips Curve, the Natural Rate of Unemployment and Inflation

Suppose the Phillips curve is represented by nt - nt- 1 = 20 - 2ut. Given this information, which of the following is most likely to occur if the actual unemployment in any period is equal to 6%?

Suppose the Phillips curve is represented by nt - nt- 1 = 20 - 2ut. Given this information, we know that the natural rate of unemployment in this economy is:

Based on your understanding of the Phillips curve, explain what happens to actual inflation (relative to expected inflation) when the actual unemployment rate is either above or below the natural rate of unemployment.

Explain how the original Phillips curve differs from the expectations- augmented Phillips curve (or the modified, or accelerationist Phillips curve).

t Assume that expected inflation is based on n e = 8nt- 1. If 8 = 1, we know that:

Who first used UK data to identify a negative relationship between unemployment and inflation?

Assume that the Phillips curve equation is represented by nt - nt- 1 = (m + z) - aut. Which of the following will cause an increase in the natural rate of unemployment?

Which of the following is one possible explanation for the change in the natural rate of unemployment in Australia during the 1990s?