Use the Following Phillips Curve Equation to Answer This Question

question 15

Multiple Choice

Use the following Phillips curve equation to answer this question: πt - πt₋₁ = (m + z) - αut.Which of the following will cause an increase in the natural rate of unemployment?

• A)a reduction in m
• B)an increase in z
• C)an increase in α
• D)a reduction in expected inflation
• E) none of the above

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Definitions:

Division's

Relates to a separate part of a larger organization, typically responsible for a specific operation or function.

Residual Income

Income that remains after all costs of capital have been deducted from net operating income, a measure of profitability.

Division

A distinct part of a larger company that operates semi-independently, typically focusing on a particular product line or market sector.

ROI Calculations

The process of determining the return on investment by dividing the net profit by the initial cost of the investment.