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Change in inflation vs short-run output

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Reference no: EM132479042

Suppose theres IS curve ( Real Interest rate vs. Short-run output) and Phillips Curve(Change in Inflation vs. Short-run Output).

  • What happens to the IS curve and PC curve when the Real interest rate increased?
  • As Real interest rate increased, what happens to the unemployment, output and inflation in the short run?

Reference no: EM132479042

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