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Business, 01.07.2020 15:01 bounce76

Suppose the Phillips curve is represented by the following equation: pi subscript t minus pi subscript t minus 1 end subscript equals 20 minus 2 u subscript t Given this information, which of the following is most likely to occur if the actual unemployment in any period is equal to 6%? 1. the rate of inflation will be constant
2. the rate of inflation will tend to increase
3. the rate of inflation will tend to decrease
4. none of the above

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