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Assume That an Economy Has the Phillips Curve $\pi$ = $\pi$ _-₁ - 0

Question 9

Multiple Choice

Assume that an economy has the Phillips curve $\pi$ = $\pi$ _-₁ - 0.5(u - 0.06) .Then the natural rate of unemployment is:

A) 0.5.
B) 0.12.
C) 0.06.
D) 0.03.

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