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Economics Given the following equations: Philips curve 7tt=7tte+y(yt-yt*)+Ett The IS-MP curve yt=yt*-(BTt-1)(7tt-7[*) +Ety i. Show that IS-PC-MP solutions for inflations is given as: 7tt=Ontte+(1-0)7T*+0(yety+Ett) Where

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Economics Given the following equations: Philips curve 7tt=7tte+y(yt-yt*)+Ett The IS-MP curve yt=yt*-(BTt-1)(7tt-7[*) +Ety i. Show that IS-PC-MP solutions for inflations is given as: 7tt=Ontte+(1-0)7T*+0(yety+Ett) Where 0=11+ay(But-1) ii. And explain how inflation is can be determined by public expectations or central bank target

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