Multiple Choice
Assume that the Phillips curve equation is represented by nt - nt- 1 = (m + z) - aut . Which of the following will not cause an increase in the natural rate of unemployment?
A) A decrease in a.
B) Expansionary monetary policy.
C) An increase in m.
D) A decrease in z.
E) Expansionary fiscal policy.
Correct Answer:
Verified
Correct Answer:
Verified
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