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Hello, please help me with this, I continue to get it incorrect. 8. Monetary policy and the Phillips Curve The following the short-run *illips Curve
Hello, please help me with this, I continue to get it incorrect.
8. Monetary policy and the Phillips Curve The following the short-run *illips Curve for hypothetical the point on the "Ph the initial and rate. Assume that the economy is Currently in equilibrium the central bank of the hypothetical decides to "-crease the money supply. u n employment rate On graph, Shif the drgg the point the do Of policy. Hint: You may assume that the centr&l bank's move was unanticipated. SR Philips curve RATE (Percent) On the following graph, shift the curie or dreg the blue point Blong the curve, or do both, to show the long-run effects of the increse in the money supply. UNEMPLOYMENT RATE (Percent) In the short run, an unexpected increse in the money supply results in unemployment rate. in the in"tion rete and 'n the In the long run, the increase in the money supply results in (relative to the economy's initial equilibrium). no change, or an Increase or a decrease no change, or an increase or a decrease in the inflation rate and in the unemployment rate Choices for the drop arrow lines are as follows: no change, or a decrease, or an increase no change, or a decrease, or an increase
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