Question: a) What is the difference between the nominal interest rate and the real interest rate? b) What is the Phillips curve? c) Based on the

a) What is the difference between the nominal interest rate and the real interest rate? b) What is the Phillips curve? c) Based on the Canadian evidence, is it true that a higher inflation rate is associated with a higher growth rate of real GDP ? d) The government of the United Sates is concerned about the high unemployment rate in the US, which reached 9.8% in October 2009. Based on the previous experience in Canada, should the governments of the US cause an increase of the inflation rate in order to reduce the unemployment rate to its natural level of 4%

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