Assume That the Phillips Curve Equation Is Represented by Nt

question 6

Multiple Choice

Assume that the Phillips curve equation is represented by nt - nt- 1 = (m + z) - aut . Which of the following will not cause an increase in the natural rate of unemployment?

• A) A decrease in a.
• B) Expansionary monetary policy.
• C) An increase in m.
• D) A decrease in z.
• E) Expansionary fiscal policy.