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Contractionary Monetary Policy
A monetary policy strategy used by central banks to reduce inflation and cool an overheated economy by raising interest rates or increasing reserve requirements.
Inflation
The frequency at which the all-encompassing costs of goods and services heighten, eroding financial purchasing capability.
Unemployment Rate
The percentage of the labor force that is jobless and actively looking for work.
Phillips Curve
An economic concept that depicts an inverse relationship between the rate of unemployment and the rate of inflation.
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