Essay
In the figure below, draw a short-run Phillips curve and a long-run Phillips curve if the expected inflation rate is 4 percent and the natural unemployment rate is 6 percent.
Explain how the two change in the short run if:
a. slower growth in aggregate demand causes a recession.
b. the inflation rate increases.
c. the natural unemployment rate increases.
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Correct Answer:
Verified
The figure with the Phillips curves is...
View Answer
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