Given the accelerationist Phillips curve ?? = - 0.3 (U - 6 ) + ?, suppose that inflation in the preceding period was 3 percent, unemployment is 6 percent, and there is a price shock of 2 percent. The current inflation rate is ________
A) 3 percent
B) 0.2 percent
C) 5 percent
D) 1 percent
E) none of the above
C
Economics
You might also like to view...
Suppose the Fed makes a $5 million discount loan to a bank. Illustrate how this affects the balance sheets of the Fed and the banking system
What will be an ideal response?
Economics
Suppose that a country imports $5.7 billion of goods and services and exports $4.2 billion of goods and services. What is the value of net exports?
A. -$1.5 billion B. $9.9 billion C. -$9.9 billion D. $1.5 billion
Economics