Advanced Placement (AP), 03.03.2021 18:10 arteria3
2. Illustrate the effects of the following developments on
both the short-run and long-run Phillips curves. Give
the economic reasoning underlying your answers.
a. a rise in the natural rate of unemployment
b. a decline in the price of imported oil
c. a rise in government spending
d. a decline in expected inflation
Answers: 1
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2. Illustrate the effects of the following developments on
both the short-run and long-run Phillips...
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