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Sketch a phillips curve diagram

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Reference no: EM132631619

Sketch a Phillips Curve diagram.

a. Label a point "N" on your Phillips Curve to indicate the level of inflation and unemployment the economy would likely be experiencing given "Extremely rapid growth of exports." Why would this be? (Keep in ming expansion of export is affecting AD)

b. Label a point "O" on your Phillips Curve to indicate the level of inflation and unemployment the economy would likely be experiencing after the government has implemented a contractionary fiscal policy. Why would this be?

Reference no: EM132631619

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