Suppose the Phillips Curve Is Represented by the Following Equation

question 5

Multiple Choice

Suppose the Phillips curve is represented by the following equation: πt - πt-1 = 20 - 2ut.Given this information,we know that the natural rate of unemployment in this economy is

• A)10%.
• B)20%.
• C)6.5%.
• D)5%.
• E)none of the above

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