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Unemployment and inflation are an economy's two most important macroeconomic issues. The federal government's fiscal policy and the Federal Reserve's monetary policy try to maintain

Unemployment and inflation are an economy's two most important macroeconomic issues. The federal government's fiscal policy and the Federal Reserve's monetary policy try to maintain both a low unemployment rate around a natural rate and a low inflation rate around 2%.

Distinguish between the short-run and the long-run in a macroeconomic analysis. Why is the relationship between unemployment and inflation different in the short-run and the long-run?

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