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

question 68

Multiple Choice

Assume that an economy has the Phillips curve $\pi$ = $\pi$ _-1 - 0.5(u - 0.06) .How many percentage point-years of cyclical unemployment are needed to reduce inflation by 5 percentage points?

• A) 20
• B) 10
• C) 5
• D) 2.5

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Definitions:

Prosocial Behavior

Social behaviors that benefit other people or society as a whole, such as helping, sharing, donating, co-operating, and volunteering.

Altruism

The principle or practice of showing concern for the well-being of others, even at a personal cost.

Natural Selection

A process in evolutionary biology where organisms better adapted to their environment tend to survive and produce more offspring.

Genetic Relation

The biological connection between individuals who share common ancestry, often impacting traits, behaviors, and genetically inherited conditions.