Question
The Phillips curve can be written in terms of the natural rate of unemployment, u n , as: t - t - 1 = -
The Phillips curve can be written in terms of the natural rate of
unemployment, un, as:
t -t - 1= - ( ut - un)
By using the above equation, explain the relationship between the actual unemployment rate ut and the inflation rate .
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Agricultural Economics
Authors: Evan Drummond, John Goodwin
3rd edition
136071929, 978-0136071921
