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:

Anterograde Amnesiacs

Individuals unable to form new memories following the onset of amnesia, though memories from before the amnesia often remain intact.

Motor Skills

Abilities involving the movement and coordination of muscles to perform activities ranging from simple to complex movements.

Implicit Memory

A type of memory in which previous experiences aid the performance of a task without conscious awareness of these previous experiences.

Classical Conditioning

A training method in which two stimuli are consistently associated with each other; over time, a reaction initially caused by the second stimulus is triggered by the first stimulus alone.