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.

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