According to the Phillips curve unemployment will re... - Solved MCQs & Answer

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According to the Phillips curve unemployment will return to the natural rate when?

AInflation is higher than the growth of nominal wages

BNominal wages are growing faster than inflation

CReal wages are back at equilibrium level

DNominal wages are equal to expected wages

Correct answer

D. Nominal wages are equal to expected wages

Explanation

The correct answer is Nominal wages are equal to expected wages.

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