Write two equations for the AS curve. In both cases, assume that expectations are adaptive and that

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Write two equations for the AS curve. In both cases, assume that expectations are adaptive and that the effect of supply shocks is zero. For the first equation, assume that the inflation rate is very sensitive to changes in the output gap. For the second equation, assume that it is not. Then graph your two curves.
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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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