The Long Run Phillips Curve:
Because it exists at Nat. Rate if Unemployment, structural changes in the economy that effect Un will also cause the LRPC to shift.
Because it exists at Nat. Rate if Unemployment, structural changes in the economy that effect Un will also cause the LRPC to shift.
Increase in Un will shift LRPC shift to the right.
Stagflation: high inflation and high unemployment at the same time.
Deflation: actual drop in price level.
Disinflation: a reduction in inflation rate from year to year
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