For this question,assume that the Phillips curve equation is represented by the following equation: πt - πt-1 = (m + z)- αut.Given this information,the natural rate of unemployment will be equal to

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Quizplus · Accepted Answer

The natural rate of unemployment is the rate at which inflation is stable, meaning πt - πt-1 = 0. Setting the equation to zero gives (m + z) = αut, so the natural rate of unemployment is (m + z)/α, which is not listed among the options.

For This Question,assume That the Phillips Curve Equation Is Represented