If the equation for a country's Phillips curve is = 0.05 0.8(u 0.05), where

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If the equation for a country's Phillips curve is π = 0.05 – 0.8(u – 0.05), where π is the rate of inflation and u is the unemployment rate, what is the short-run inflation rate when unemployment is 3 percent (0.03)?

A) .066

B) -.056

C) -.066

D) .056

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ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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Posted Date: Dec 07, 2022 05:43 AM

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If the equation for a country's Phillips curve is = 0.05 0.8(u 0.05), where

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