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Why would you expect the inflation rate to accelerate

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Reference no: EM132482167

Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the "full employment" unemployment rate (NAIRU) and remained at that low level for a year or longer? Explain your answer in a few sentences.

Also if you could PLEASE Draw an AS/AD diagram illustrating your answer and refer to the current state of the economy of the US to compare in this context. Please if you could label the lines and axed in the diagram.

Reference no: EM132482167

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