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The accompanying graph depicts the Short-Run Phillips Curve (SRPC) when the public expects no inflation in the economy. a. According to this SRPC, what would
The accompanying graph depicts the Short-Run Phillips Curve (SRPC) when the public expects no inflation in the economy. a. According to this SRPC, what would inflation be if unemployment is 9%? 4 3 SRPC Inflation rate (%) 2 0 b. Please move the SRPC line to reflect what would happen if -1 the public's inflation expectations increased so that they now expect the inflation rate to increase by 2%. -2 3 c. If the unemployment rate is still 9%, what is the new 0 1 2 3 4 5 6 7 8 9 10 inflation rate after this change in expectations? Unemployment rate (%)
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