11. Suppose Federal Reserve policymakers accept the theory of the short-run Phillips curve and the naturalrate hypothesis...

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11. Suppose Federal Reserve policymakers accept the theory of the short-run Phillips curve and the naturalrate hypothesis and want to keep unemployment close to its natural rate. Unfortunately, because the natural rate of unemployment can change over time, they aren’t certain about the value of the natural rate. What macroeconomic variables do you think they should look at when conducting monetary policy?

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