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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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