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Summary of the Phillips curves
In neo-classical synthesis, augmented Phillips curve is known as the short-run Phillips curve. It is presumed to be stable as long as expectations of future inflation don't change. To summarize, we have three Phillips curves:
Explain the adjustment to the new equilibrium price from an increase in demand.
A bakery has fixed costs of $10 per day and variable costs of $1 per loaf. Its oven can handle up to 50 loaves a day and it is impossible to obtain additional capacity. Sketch the
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discuss the contention that the existance of a labour market in a perfect competion is a fallacy
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