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    Principles of Macroeconomics Study Set 8
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    Exam 22: The Short Run Trade Off Between Inflation and Unemployment: Part A
  5. Question
    How Is a Decrease in the Natural Rate of Unemployment
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How Is a Decrease in the Natural Rate of Unemployment

Question 27

Question 27

Short Answer

How is a decrease in the natural rate of unemployment shown in the Phillips curve diagram? Does this decrease change the inflation rate?

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