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-Under What Circumstance Will the Economy Experience Both Inflation and Unemployment

Question 41

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-Under what circumstance will the economy experience both inflation and unemployment? Explain in terms of shifts of the aggregate supply and/or aggregate demand curves. Under what circumstances might the impact on inflation be even worse?
-Under what circumstance will the economy experience both inflation and unemployment? Explain in terms of shifts of the aggregate supply and/or aggregate demand curves. Under what circumstances might the impact on inflation be even worse?

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If aggregate supply decreases, and aggre...

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