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    Macroeconomics A Contemporary Introduction Study Set 1
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    Exam 16: The Policy Debate: Active or Passive
  5. Question
    The Early Phillips Curve Showed a Trade-Off Between Unemployment and Inflation
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The Early Phillips Curve Showed a Trade-Off Between Unemployment and Inflation

Question 52

Question 52

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The early Phillips curve showed a trade-off between unemployment and inflation because it was drawn for a period in which the main source of instability was aggregate demand.

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