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Changes in the natural rate of unemployment a. Repeat Problem 8 but now draw separate graphs for the period 1970 to 1990 and the period

Changes in the natural rate of unemployment

a. Repeat Problem 8 but now draw separate graphs for the

period 1970 to 1990 and the period since 1990.

b. Do you find that the relation between inflation and unemployment

is different in the two periods? If so, how

has the natural rate of unemployment changed?

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