How can the natural rate of unemployment be identified on the expectations-augmented Phillips curve? It is the unemployment rate associated with _____ unexpected inflation.
A) 5%
B) 2%
C) zero
D) -2%

Question

Quizplus · Accepted Answer

The natural rate of unemployment on the expectations-augmented Phillips curve is associated with zero unexpected inflation, meaning inflation exactly matches expectations.

How Can the Natural Rate of Unemployment Be Identified on the Expectations-Augmented