Illustrate the effects of the following developments on both the short-run and long-run Phillips curves. Give the

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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

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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Question Posted: Dec 14, 2012 06:23 AM

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Illustrate the effects of the following developments on both the short-run and long-run Phillips curves. Give the

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a A rise in the natural rate of unemployment shifts the longrun Phillips curve to the right and the ...View the full answer

Principles of economics

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