Phillips curve Flashcards
How can the price-setting anf wage-setting relations be combined?
How can the wage relation be written in terms of u and z?
How can the price setting relationship be rewritten, writing the wage-setting relation in terms of u and z?
What is the relationship between inflation, expected inflation and the rate of unemployment?
What is a?
a is a sensitivity parameter
What was the original phillips curve before 1970?
What is expected inflation?
What is the relationship between inflation, expected inflation and rate of unemployment, involving time?
How can the original phillips curve be rewritten involving expected inflation?
What is the value of theta for the original PC?
What does this make the original PC?
What happens to the PHillips curve when theta becomes one?
What is the equation for the natural rate of unemployment?
What is the equation for chnage in inflation?
In what other way can the equation for change in inflation be written?
