Macro 6.docx - For this question assume that the Phillips curve equation is represented by the following \u03c0t \u03c0t-1 =(m z \u03b1ut Which of the following

# Macro 6.docx - For this question assume that the Phillips...

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For this question, assume that the Phillips curve equation is represented by the following: πt - πt-1 = (m + z) - αut. Which of the following will cause a reduction in thenatural rate of unemployment? A) an increase in αB) an increase in zC) an increase in expected inflationD) an increase in actual inflationE) an increase in mA) an increase in α In the Phillips curve equation, which of the following will cause an increase in the current inflation rate Which of the following situations generally exists when deflation occurs?