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38. Suppose that 75% of the workers have indexed labour contracts. The Phillips curve is given by it: = it? + 0.10 21st. Expected ination is given by 1:? = (1 9):? + nk-l where 6 is assumed to be one. Suppose that the rate of unemployment is initially equal to the natural rate. in year t, nt_1 is assumed to be 2% and the authorities decide to bring the unemployment rate down to 3% and hold it there forever. What is the ination rate at t + 3? a. 34% b. 66% c. 50% d. 18% e. All of the answers here are incorrect