Given the Accelerationist Phillips Curve Δπ = - 0

question 79

Multiple Choice

Given the accelerationist Phillips curve Δπ = - 0.3 (U - 6) + ρ,suppose that inflation in the preceding period was 3 percent,unemployment is 6 percent,and there is a price shock of 2 percent.The current inflation rate is ________.

• A)3 percent
• B)0.2 percent
• C)5 percent
• D)1 percent
• E)none of the above

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