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      Question

      The level of current inflation is 12% and inflation for

      the previous year was 6%. The strength of the effect of unemployment on the wages is 1.5. Calculate the current unemployment rate when the natural rate of unemployment is 15%
      A 11.5% Correct Answer Incorrect Answer
      B 11% Correct Answer Incorrect Answer
      C 10.0% Correct Answer Incorrect Answer
      D 12% Correct Answer Incorrect Answer

      Solution

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