Hello, can I please have assistance with answering ALL parts to the following question? It is imperative
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Hello, can I please have assistance with answering ALL parts to the following question? It is imperative that I have a clear drawing/illustration of the graph questions and which direction the symbols are to be shifted. Thank you kindly.
B. Monetary policy and the Phillips curve The following graph plots the short-run Phillips curve for a hypothetical economy. The given point on the graph indicates the Initial rates of unemployment and inflation. Assume that the economy is currently in long-run equilibrium. Suppose the central bank of the hypothetical economy decides to decrease the money supply. On the following graph, shift the curve or drag the blue point along the curve, or do both, to show the short-run effects of this policy. Hint: You may assume that the central bank's move was unanticipated. (?) SR. Phillips Curve INFLATION RATE ( Percent) SIR Phillips Curve 15 UNEMPLOYMENT RATE ( Percent) In the short run, an unexpected decrease in the money supply results in In the Inflation rate and In the unemployment rate. On the following graph, shift the curve or drag the blue point along the curve, or do both, to show the long-run effects of the decrease in the money supply. (?) -0- O INFLATION RATE (Percent) 15 UNEMPLOYMENT RATE [Percent) In the long run, the decrease in the money supply results in In the inflation rate and in the unemployment rate (relative to the emnomy's initial equilibrium)
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