-In the figure above, draw a short-run Phillips curve and a long-run Phillips curve if the expected inflation rate is 4 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:
Kinetic Limitations
Restrictions in the rate of a physical or chemical process, caused by the reaction speed, which affects the overall system’s efficiency.
Anterior Air Sacs
Air-filled spaces located in the forward part of an avian respiratory system that facilitate gas exchange.
Posterior Air SACs
Posterior air sacs are part of a bird's respiratory system, acting as reservoirs for fresh air, allowing for efficient gas exchange.
Fresh Air
Air that is outdoor, unpolluted, and considered healthy to breathe, characterized by its cleanliness and freshness.
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