In the expectations-augmented Phillips curve, ? = ?e - 3(u - 
). If ? = 0.03 when ?e = 0.06 and u = 0.06, then 
=
A. 0.02.
B. 0.03.
C. 0.04.
D. 0.05.
Answer: D
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A) 80 percent B) 10 percent C) 4 percent D) 8 percent E) None of the above are correct.
The establishment of the Euro as a unit of account in 1999 meant that from then on the currencies of the participating countries traded at a fixed rate, until the Euro completely replaced these currencies in the year 2002
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Economists refer to the ability of one person or nation to do something with a lower opportunity cost than another as _____
a. voluntary trade b. specialization c. gains from trade d. absolute advantage e. comparative advantage