Assume That the Phillips Curve Equation Is Represented by Nt

question 67

Multiple Choice

Assume that the Phillips curve equation is represented by nt - nt- 1 = (m + z) - aut. Which of the following will cause an increase in the natural rate of unemployment?

• A) An increase in expected inflation.
• B) An increase in actual inflation.
• C) A decrease in z.
• D) An increase in m.
• E) An increase in a.

---

Definitions:

Bayon

A richly decorated Khmer temple in Cambodia, known for its massive stone faces and serves as the central temple of the ancient city of Angkor Thom.

Belief System

A set of principles or tenets which together form the basis of a religion, philosophy, or moral outlook.

Mithraism

An ancient Roman mystery religion centered around the god Mithras, characterized by complex rituals and symbolism, primarily appealing to soldiers and merchants.

Enlightenment

The 18th-century Western philosophy based on empirical evidence. The Enlightenment was a new way of thinking critically about the world and about humankind, independently of religion, myth, or tradition.