Which of the Following Equations Summarize the Analysis of Friedman

question 189

Multiple Choice

Which of the following equations summarize the analysis of Friedman and Phelps (where a is positive number) ?

• A)unemployment rate = natural rate of unemployment - a(actual inflation - expected inflation)
• B)unemployment rate = natural rate of unemployment - a(expected inflation - actual inflation)
• C)unemployment rate = expected rate of inflation - a(actual inflation - expected inflation)
• D)unemployment rate = actual rate of inflation - a(actual unemployment - expected unemployment)

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