Assume That the Phillips Curve Equation Is Represented by Nt

Multiple Choice

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?

A) An increase in expected inflation.
B) An increase in actual inflation.
C) A decrease in z.
D) An increase in m.
E) An increase in a.