-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:
Hallucination
A perception in the absence of external stimulus that has qualities of real perception, typically auditory or visual, that can be associated with mental health disorders.
Sensory Systems
Sensory systems are the parts of the nervous system that receive and interpret information from the environment through senses like sight, hearing, touch, taste, and smell.
Schizophrenia
A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often characterized by delusions, hallucinations, and cognitive issues.
Hallucination
A perception in the absence of external stimulus that has qualities of real perception; hallucinations are vivid, substantial, and located in external objective space.
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