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Take a look at the IS-MP-PC model shown here. The equilibrium real interest rate is: Real interest rate 4% 3% 2% MP curve IS curve
Take a look at the IS-MP-PC model shown here. The equilibrium real interest rate is: Real interest rate 4% 3% 2% MP curve IS curve 0% -6% 0% Output gap Unexpected inflation 1% 0% -1% 4%. 3%. 02%. O-1%. Phillips curve -6% 0% Output gap
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