For This Question,assume That the Phillips Curve Equation Is Represented

question 42

Multiple Choice

For this question,assume that the Phillips curve equation is represented by the following: πt - πt-1 = (m + z) - αut.Which of the following will NOT cause an increase in the natural rate of unemployment?

• A)a reduction in m
• B)a reduction in z
• C)an increase in α
• D)an increase in the expected rate of inflation
• E)all of the above

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