In the Expectations-Augmented Phillips Curve π = πᵉ - 3(u

question 2

Multiple Choice

In the expectations-augmented Phillips curve π = πᵉ - 3(u - .06) ,the natural rate of unemployment is

• A)0.02.
• B)0.03.
• C)0.06.
• D)18.

---

Definitions:

Reconciled Cash Balance

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement, to ensure accuracy.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are consistent.

Bank Service Charge

Fees charged by a bank to a customer for account services provided.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.