For This Question,assume That the Phillips Curve Equation Is Represented

Multiple Choice

For this question,assume that the Phillips curve equation is represented by the following equation: πt - πt₋₁ = (m + z) - αut.A reduction in the unemployment rate will cause

A) a reduction in the markup over labor costs (i.e., a reduction in m) .
B) an increase in the markup over labor costs.
C) an increase in the inflation rate over time.
D) a decrease in the inflation rate over time.
E) none of the above