Concept of an expectations-augmented phillips curve

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Discuss the concept of an expectations-augmented Phillips curve and explain why this renders expansionary fiscal policy futile as a device for permanently lowering the level of unemployment.

Explain if:

a) There is no alternative to austerity. Discuss.

b) To what extend to the costs of further economic growth more than offset any future benefits.

c) Is there any link between the rate of growth of money supply and inflation?

Reference no: EM133273767

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