Assume That an Economy Has the Phillips Curve $\pi$ = $\pi$ _-1 - 0

question 9

Multiple Choice

Assume that an economy has the Phillips curve $\pi$ = $\pi$ _-1 - 0.5(u - 0.06) .Then the natural rate of unemployment is:

• A) 0.5.
• B) 0.12.
• C) 0.06.
• D) 0.03.

---

Definitions:

Implicit Memory

A type of long-term memory that influences thoughts and behaviors without conscious awareness, such as skills, habits, and conditioned responses.

Declarative Memory

A type of long-term memory that allows individuals to recall facts and events explicitly.

Word Stems

The base part of a word to which affixes (prefixes and suffixes) can be added to form new words or variations of the word.

Anterograde Amnesia

A condition characterized by an inability to form new memories following an event that caused the amnesia, though long-term memories from before the event may remain intact.