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    Question

    The level of current inflation is 9% and inflation for

    the previous year was 6%. The strength of the effect of unemployment on the wages is 2. Calculate the current unemployment rate when the natural rate of unemployment is 10%
    A 11.5% Correct Answer Incorrect Answer
    B 8.5% Correct Answer Incorrect Answer
    C 7.0% Correct Answer Incorrect Answer
    D 0% Correct Answer Incorrect Answer

    Solution

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