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Assume that expected inflation is 1%, unemployment is 12% and equilibrium unemployment is 7%. How high will inflation then be according to the following estimated
Assume that expected inflation is 1%, unemployment is 12% and equilibrium unemployment is 7%. How high will inflation then be according to the following estimated Phillips curve?
t e=0,5(t n)
which is the answer option is right
a.1,5%
b.4%
c.6%
d.2,5%
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