The inflation rate is 2 percent a year, and the quantity of money is growing at a
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The inflation rate is 2 percent a year, and the quantity of money is growing at a pace that will maintain that inflation rate. The natural unemployment rate is 7 percent, and the current unemployment rate is 9 percent. In what direction will the unemployment rate change? How will the short-run Phillips curve and the long-run Phillips curve shift?
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The current unemployment rate is greater than the natura...View the full answer
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