Use the Following Phillips Curve Equation to Answer This Question

question 60

Multiple Choice

Use the following Phillips curve equation to answer this question: πt - πt-1 = (m + z) - αut.Which of the following will cause an increase in the natural rate of unemployment?

• A)a reduction in m
• B)an increase in z
• C)an increase in α
• D)a reduction in expected inflation
• E)none of the above