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Q 1 . Phillip's Curve: For each of the following draw an AD - AS diagram and a corresponding Phillip's curve assuming the following: (
Q Phillip's Curve: For each of the following draw an ADAS diagram and a corresponding Phillip's curve assuming the following: actual RGDP is $ full employment RGDP is $ the natural rate of unemployment is ; actual unemployment fluctuates around
a Show in both diagrams the effect of an increase in government purchases that pushes actual RGDP up to full employment
b Again assume actual GDP is at $ show in both diagrams the effect of the Federal Reserve bank selling versus buying treasury bonds to banks.
c Again assume actual GDP is at $ show in both diagrams the effect of selfcorrection mechanism.
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