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Calculate and interpret the intercept on the horizontal axis

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Graph the Phillips relation πt = 2.8% - 0.16µt with inflation on the vertical axis and unemployment on the horizontal axis. Calculate and interpret the intercept on the vertical axis. Why might this be an undesirable economic outcome? Calculate and interpret the intercept on the horizontal axis. Why might this be an undesirable economic outcome? What is the unemployment rate if inflation is 2%?

Reference no: EM133480640

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