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The Original Phillips Curve Implied or Assumed That

Question 40

Multiple Choice

The original Phillips curve implied or assumed that:


A) the actual and expected rates of inflation would always be unequal.
B) a lower rate of unemployment causes a decreasing rate of inflation.
C) the expected inflation rate is equal to last year's inflation rate.
D) the markup over labour costs was zero.
E) the expected rate of inflation would be zero.

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