Which is comparable to potential gdp

Reference no: EM133710503

Question: Based on expectation augmented Phillips curve, answer following argument by T (true) or F (false) - π= -0.5U+2.2 - (1)If expected inflation does not change and real inflation rate falls 1%p from previous period, unemployment rate become 7.2% (2)If expected inflation rate rises, long run Phillips curve shifts to the right. (3)Unemployment rate, which is comparable to potential GDP, is 4.4% (4)If actual unemployment rate is 5%, the actual inflation rate is higher than expected inflation rate.

Reference no: EM133710503

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