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  3. Study Set
    Principles of Economics Study Set 8
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    Exam 35: The Short-Run Tradeoff Between Inflation and Unemployment
  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 216

Question 216

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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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Both the long-run and the shor...

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