1. Assume that in an economy the phillips curve is: Att = -0,8 (U-Un) + p Last year's inflation was 0,08, current inflation is 0,08, unemployment rate is 0,04 and the price shock is 0,01. What is the natural rate of unemployment? 2. The price level is 143, the inflation rate is 0,08, the nominal money supply is 12785, the nominal interest rate is 0,13 percent. Calculate the seignorage.
1. Assume that in an economy the phillips curve is: Att = -0,8 (U-Un) + p Last year's inflation was 0,08, current inflation is 0,08, unemployment rate is 0,04 and the price shock is 0,01. What is the natural rate of unemployment? 2. The price level is 143, the inflation rate is 0,08, the nominal money supply is 12785, the nominal interest rate is 0,13 percent. Calculate the seignorage.
Chapter7: Unemployment And Inflation
Section: Chapter Questions
Problem 4.10P
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