For This Question,assume That the Phillips Curve Equation Is Represented

question 43

Multiple Choice

For this question,assume that the Phillips curve equation is represented by the following: πt - πt₋₁ = (m + z) - αut.Which of the following will cause a reduction in the natural rate of unemployment?

• A)an increase in m
• B)an increase in z
• C)an increase in α
• D)an increase in actual inflation
• E) an increase in expected inflation

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