A policy change that reduces the natural rate of unemployment shifts both the long-run aggregate-supply curve and the long-run Phillips curve left.
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Q2: Unexpectedly high inflation reduces unemployment in the
Q3: Other things the same, a decrease in
Q4: The logic behind the tradeoff between inflation
Q5: A given short-run Phillips curve shows that
Q6: If the Fed were to increase the
Q8: Although monetary policy cannot reduce the natural
Q9: If monetary policy moves unemployment below its
Q10: Samuelson and Solow believed that the Phillips
Q11: In the long run, the natural rate
Q12: Short-run outcomes in the economy can be
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