According to the equation for the Phillips curve, inflation is zero when the increase in nominal wages is _____ the rate of increase in labor productivity.

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According to the Phillips curve, inflation is zero when the increase in nominal wages is equal to the rate of increase in labor productivity. This is because when wages increase at the same rate as productivity, there is no increase in unit labor costs, and therefore no pressure on firms to increase prices.

According to the Equation for the Phillips Curve, Inflation Is