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    Economics Principles and Policy Study Set 2
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    Exam 33: The Trade-Off Between Inflation and Unemployment
  5. Question
    When Inflation Comes from the Supply Side, Inflation and Unemployment
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When Inflation Comes from the Supply Side, Inflation and Unemployment

Question 106

Question 106

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When inflation comes from the supply side, inflation and unemployment are positively correlated.Does this mean that monetary and fiscal policymakers can escape the trade-off between inflation and unemployment?

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No.Shifts of the aggregate supply curve ...

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