The Long Run Phillips Curve: Analysis and Explanation

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Business
•
11th Grade - University
•
Hard
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4 questions
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1.
OPEN ENDED QUESTION
3 mins • 1 pt
What happens to the inflation rate when the economy returns to the natural unemployment level after a demand-side stimulus?
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2.
OPEN ENDED QUESTION
3 mins • 1 pt
How can sustainable reductions in unemployment be achieved according to the text?
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3.
OPEN ENDED QUESTION
3 mins • 1 pt
What are the limitations of demand-side policies in reducing the natural level of unemployment?
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4.
OPEN ENDED QUESTION
3 mins • 1 pt
Summarize the key points that explain why the Phillips Curve is vertical.
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