Question: In the augmented - Phillips curve given as t = t e + 0 . 1 5 - 3 u t Originally, suppose that people
In the augmentedPhillips curve given as
Originally, suppose that people believe that If the government implements a monetary policy leading to and people change their expectation to what will happen?
A The augmentedPhillips curve shifts down and the unemployment rate is less than the natural unemployment rate
B The augmentedPhillips curve shifts down and the unemployment rate is greater than the natural unemployment rate
C The augmentedPhillips curve will shift down and the unemployment rate is equal to the natural unemployment rate.
D The augmentedPhillips curve will shift up and the unemployment rate is less than the natural unemployment rate.
E The augmentedPhillips curve will shift up and the unemployment rate is greater than the natural unemployment rate.
F The augmentedPhillips curve will shift up and the unemployment rate is equal to the natural unemplovment rate.
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