1. what's the different between expected-augment Phillips Curve and original Phillips Curve? according to the expected-augment Philips curve, under what condition should short-run Phillips Curve relationship appear in the data?
2. why does policy make keep inflation rate low? who suffer during cyclical unemployment?
3. why is natural unemployment an important variable in macro economic? what government policy can be use to reduce natural unemployment?
4. what is the greatest potential cost associated with disinflation? how does the responsiveness the public's inflation expectation affect the size of the potential cost?
5. why does central bank work hard to establish their credibility? what benefit might the public gain if they have a great deal of credibility?