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Discuss the validity of the following statement, using the model of the aggregate supply curve: In the last decades, the Phillips curve has flattened. That
Discuss the validity of the following statement, using the model of the aggregate supply curve: "In the last decades, the Phillips curve has flattened. That is, the empirical relationship between inflation and economic performance has weakened. This is because markets have overall become more competitive, so that firms have less power to adjust their prices to demand."
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