Which Equation Summarize the Analysis of Friedman and Phelps (Where

question 145

Multiple Choice

Which equation summarize the analysis of Friedman and Phelps (where a is a positive number) ?

• A) unemployment rate = natural rate of unemployment - a(actual inflation - expected inflation)
• B) unemployment rate = natural rate of unemployment - a(expected inflation - actual inflation)
• C) unemployment rate = expected rate of inflation - a(actual inflation - expected inflation)
• D) unemployment rate = actual rate of inflation - a(actual unemployment - expected unemployment)

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Definitions:

Brain

The organ located in the skull responsible for coordinating sensation, intellectual and nervous activity.

Impulses

are sudden, involuntary urges to do something, often without premeditation.

Pruning

The process of reducing or eliminating neural connections in the brain that are not used, which serves to streamline cognitive functioning.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.