The equation, Unemployment rate = Natural rate of unemployment - a × (?ctual inflation - Expected inflation),

a. is the equation of the short-run Phillips curve.
b. implies there can be no stable short-run Phillips curve.
c. reflects the reasoning of Friedman and Phelps.
d. All of the above are correct.

d

Economics

You might also like to view...

If Y>C+I+G but Md= Ms, then

a. interest rates must rise and output must fall. b. both interest rates and output must fall. c. interest rates must fall and output must rise. d. both interest rates and output must rise. e. none of the above.

Economics

What is a sumptuary tax? Give an explanation for how cigarette taxes could be justified as a sumptuary tax. Give an explanation for why cigarette taxation might not, in actuality, achieve the goal of sumptuary taxation

What will be an ideal response?

Economics