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Assume That the Phillips Curve in an Economy Is π\pi = 3 - 5(u - 5),where

Question 12

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Assume that the Phillips curve in an economy is π\pi = 3 - .5(u - 5) ,where π\pi is the inflation rate and u is the unemployment rate.If unemployment is currently is currently 6 percent,then inflation should be


A) 2.0%
B) 3.5%
C) 2.5%
D) 3.0%

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