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Given the Accelerationist Phillips Curve Δπ = - 0

Question 9

Multiple Choice

Given the accelerationist Phillips curve Δπ = - 0.3 (U - 6) + ρ,suppose that inflation in the preceding period was 3 percent,unemployment is 7 percent,and there is no price shock.The current inflation rate is ________.


A) 2.7 percent
B) 3 percent
C) 0.9 percent
D) 3.3 percent
E) none of the above

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