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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 cause a reduction in the natural rate of unemployment? (a) an increase in m (b) an increase in z (c) an increase in α (d) an increase in actual inflation (e) an increase in expected inflation
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For this question, assume that the Phillips curve equation is represented by the following: πt − πt−...
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