According to the Phillips curve unemployment will return to the natural rate when ........

Finance Inflation Trends

According to the Phillips curve, unemployment will return to the natural rate when:

Nominal wages are equal to expected wages

Real wages are back at long-run equilibrium level

Nominal wages are growing faster than inflation

Inflation is higher than the growth of nominal wages

Unemployment will return to the natural rate when the real wage is back at equilibrium level.

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