Question: In the expectations-augmented Phillips curve, pi = pie - 3( u - 0.05), where pi is the inflation rate, pie is the expected inflation rate

In the expectations-augmented Phillips curve,pi=pie- 3(u- 0.05), wherepiis the inflation rate,pieis the expected inflation rate anduis the unemployment rate. Whenpi= 0.03 andpie= 0.06, the unemployment rate is:

Select one:

a.0.04.

b.0.05.

c.0.06.

d.0.07.

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