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Suppose that the Phillips curve is given by - = 0.1 - 2u where = -1 Suppose that inflation in year t - 1 is zero. In year t,
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PC: П, – п. = 0. 1 - 2 и 4. Tee - Пе- 8 ме чу. 9О. o4 Со ) Cute uke, со на п, - fit -1 - 0 - 2 ae Тk - О . .) - 2 (0.04) Тleгш Week: 34 ПП ISUay Те — Пе го. 1 - 24 Те – о. O2 = o. 1 - & Co. оч) Тler) = 0, 02 +0.о . Тlt = . оч in t+1 perid = 0.04 orWire Friday (235 - 30) Б.slue-ke-1 : б. 1 – 2 ч. 4 – 44 -1 = p - - | «е- Иe- = 0.2 - Чи new phillips cuorme: cc) ue - 02 р. –brunien a=0.5 ut = 040 incenation 27. Alle indexation Tuy t tti yto t+2 Inflation cenperiod) t+s 121, 16. 89, Due to wage ind

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