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Answer to Question #59600 in Macroeconomics for ali
Question #59600
Philips Curve.
I = 36 - 4U.
I = 12.
Determine the unemployment rate.?
I = 36 - 4U.
I = 12.
Determine the unemployment rate.?
Expert's answer
If the equation of the Philips Curve is I = 36 - 4U and I = 12, then the unemployment rate U is:
12 = 36 - 4U,
4U = 24,
U = 6%.
12 = 36 - 4U,
4U = 24,
U = 6%.
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