Proponents of supply-side policies that aim to stimulate productivity through tax cuts and work incentives argue that
Question:
a. What effect would an increase in productivity have on the Phillips curve? Illustrate your answer with a graph.
b. What effect would the productivity increase have on inflation?
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Related Book For
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
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