Multiple Choice
Suppose the Phillips curve is represented by the following equation: πt - πt₋₁ = 20 - 2ut.Given this information,which of the following is most likely to occur if the actual unemployment in any period is equal to 6%?
A) the rate of inflation will tend to increase
B) the rate of inflation will be constant
C) the rate of inflation will tend to decrease
D) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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