Management Notes

Reference Notes for Management

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

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

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

    1. Nominal wages are equal to expected wages
    2. Real wages are back at equilibrium level
    3. Nominal wages are growing faster than inflation
    4. Inflation is higher than the growth of nominal wages

Correct Answer: Real wages are back at equilibrium level

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