Assume that the Phillips curve for Canada is given by the following equation: Tt =rt +0.1-...

 

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Assume that the Phillips curve for Canada is given by the following equation: Tt =r°t +0.1- 2ut, Suppose лt = πt-1.* a. Calculate un." Now rewrite the Philips curve in the following form: πt - + -2 (ut - un). Tt-1 = 4 = J Suppose ut = 0.06 and лt-1 b. Calculate лt. Is t greater than, less than or equal to t-1?+ c. Сalculate лt for each of the following values of ut: 0.07, 0.08, and 0.09. d. What happens to the change in inflation in t for each 1% increase in ut?+ e. As ut increases, is inflation in period t increasing or decreasing? 0.04.+ + Assume that the Phillips curve for Canada is given by the following equation: Tt =r°t +0.1- 2ut, Suppose лt = πt-1.* a. Calculate un." Now rewrite the Philips curve in the following form: πt - + -2 (ut - un). Tt-1 = 4 = J Suppose ut = 0.06 and лt-1 b. Calculate лt. Is t greater than, less than or equal to t-1?+ c. Сalculate лt for each of the following values of ut: 0.07, 0.08, and 0.09. d. What happens to the change in inflation in t for each 1% increase in ut?+ e. As ut increases, is inflation in period t increasing or decreasing? 0.04.+ +

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