MCQOPTIONS
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| 1. |
According to Phillips curve unemployment will return to the natural rate when: |
| A. | Nominal wages are equal to expected wages |
| B. | Real wages are back at equilibrium level |
| C. | Nominal wages are growing faster than inflation |
| D. | Inflation is higher than the growth of nominal wages |
| Answer» C. Nominal wages are growing faster than inflation | |