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Short-run phillips curve and long-run phillips curve shift

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The inflation rate is 3 percent a year, and the quantity of money is growing at a pace that will maintain the inflation rate at 3 percent a year. The natural unemployment rate is 4 percent, and the current unemployment rate is 3 percent. In what direction will the unemployment rate change? How will the short-run Phillips curve and the long-run Phillips curve shift?

Reference no: EM132506961

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