Question
Economicsdisruption to the supply of natural gas to atlantis has caused a surge in energy prices.while atlantis has had a period of inflation around 2%
Economicsdisruption to the supply of natural gas to atlantis has caused a surge in energy prices.while atlantis has had a period of inflation around 2% for several years, the currentvrate of inflation is 6%a). what type of shock has affected atlantis and how it fueled inflation?b). explain what is meant by the natural rate of unemployment and explain why the long run philip curve is vertical at that rate.why is inflation constant in the long run equilibrium.c). analyze the effect of the shock on atlantis using short and long run philip curves. explain how the central bank's willingness to accomodate the shock effects inflation and unployment in atlantisd). explain why the credibility of monetary policy is important.
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