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given the natural rate is 3% (5 points) What is the natural rate of unemployment for this economy? Explain in your answer also the concept
given the natural rate is 3% (5 points) What is the natural rate of unemployment for this economy? Explain in your answer also the concept of the natural rate. b. (5 points) Suppose that unemployment at the current level of GDP is 5%. What is the expected rate of inflation? How does this affect the short-run Phillips curve? What will happen if policymakers act to keep unemployment at 5%
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