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Consider the model describing the interaction of inflation and unemployment discussed in class (where p... Um denote rate of inflation, expected rate of inflation, rate

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Consider the model describing the interaction of inflation and unemployment discussed in class (where p... Um denote rate of inflation, expected rate of inflation, rate of unemployment, rate of growth of nominal money balance, respectively.) Suppose that the equations describing the model took the following specific forms with certain assumptions on their coefficients: p=5 - 15U ++ dx dU dt (2a)Find the second-order differential equation for #(t). (2b) Is the time path for (t) convergent? Is it fluctuating? (Explain your answer.) Consider the model describing the interaction of inflation and unemployment discussed in class (where p... Um denote rate of inflation, expected rate of inflation, rate of unemployment, rate of growth of nominal money balance, respectively.) Suppose that the equations describing the model took the following specific forms with certain assumptions on their coefficients: p=5 - 15U ++ dx dU dt (2a)Find the second-order differential equation for #(t). (2b) Is the time path for (t) convergent? Is it fluctuating? (Explain your answer.)

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