Question: Given the following model for the interaction between unemployment (u) and inflation (p), find the time path of the variable (pi) and determine its nature

Given the following model for the interaction between unemployment (u) and inflation (p), find the time path of the variable (pi) and determine its nature

Given the following model for the interaction between unemployment (u) and inflation

P = 14 - 1/2 U + n R = /2 ( P -1) P - m

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