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Exercise 2 (4 points) Some economists believe that the short-run Phillips curve is relatively steep and shifts quickly in response to changes in the economy.

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Exercise 2 (4 points) Some economists believe that the short-run Phillips curve is relatively steep and shifts quickly in response to changes in the economy. Would these economists be more or less likely to favour contractionary policy in order to reduce inflation than economists who had the opposite views? What do such beliefs imply about the benefits of using policy to reduce unemployment? the costs of using policy to reduce inflation? Explain thoroughly

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