If Okun's law is U - Un = - 0.6 (Y - YP) , and the Phillips curve is π = πe - 2.5 (U - Un ) + ρ, then the short-run aggregate supply curve is ________.
A) π = πe - 1.5 (Y - YP) + ρ
B) π = πe + 4.2 (Y - YP) + ρ
C) π = πe - 2.5 (Y - YP) + ρ
D) π = πe - 2.5 (Y + YP) + ρ
E) none of the above
Correct Answer:
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