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

Question 43

Multiple Choice

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


A) an increase in m
B) an increase in z
C) an increase in α
D) an increase in actual inflation
E) an increase in expected inflation

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