-In the figure above, draw a short- run Phillips curve and a long- run Phillips curve if the expected inflation rate i percent and the natural unemployment rate is 6 percent. Explain how the two change in the short run if:
a) slower growth in aggregate demand causes a recession.
b) the inflation rate increases.
c) the natural unemployment rate increases.
Definitions:
Completed Goods
Finished products ready for sale or distribution, produced from raw materials through the manufacturing process.
Completed Goods
Finished products that are ready for sale or distribution, having passed through all stages of production.
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