Inflation, Disinflation, and Deflation Graded Assignment I Read Chapter 16 I Back to AssignmentDue...

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Inflation, Disinflation, and Deflation Graded Assignment I Read Chapter 16 I Back to AssignmentDue Sunday XXXXXXXXXXat 11:00 PM8. Long-run Phillips curveAa Aa rrThe following graph shows an economy in long-run equilibrium at point A (grey star symbol). The vertical line is the long-run Phillips curve. The downward-sloping curve labeled SRPC1 is the short-run Phillips curve passing through point A.INFLATION RATE (Percent)87654321Long-Run Phillips CurveSRPC1 XXXXXXXXXXUNEMPLOYMENT RATE (Percent)8 SRPC2C -Which of the following is true along SRPC17• The actual unemployment rate is 3%. CI The actual inflation rate is 3%. • The natural rate of unemployment is 3%. CO The expected inflation rate is 3%.Suppose that the Federal Reserve (the Fed) suddenly and unexpectedly increases the money supply in an effort to reduce unemployment. As a result of this unanticipated action, actual inflation rises to 4%. On the previous graph, use the black point (X symbol labeled '8') to illustrate the short-run effects of this policy.
	
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Inflation, Disinflation, and Deflation Graded Assignment I Read Chapter 16 I Back to Assignment Due Sunday XXXXXXXXXXat 11:00 PM 8. Long-run Phillips curve Aa Aa rr The following graph shows an...

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