Question: Question 1 (12 marks; length guide: about half a page for each, including graphs) Briefly explain the following concepts: a) liquidity trap (3 marks) b)

Question 1 (12 marks; length guide: about half a page for

Question 1 (12 marks; length guide: about half a page for each, including graphs) Briefly explain the following concepts: a) liquidity trap (3 marks) b) natural rate of unemployment (3 marks) c) inflation target (3 marks) d) potential output

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