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Explanation of augmented Phillip's curve model.

Using the dynamic augmented Phillip's Curve model (Y/PC/MR), demonstrate the effects of the

Following changes. Show both the short-run and long-run effects.

a. An increase in government spending with a compensating increase in the monetary rule.

b. A fall in the monetary rule (a shift down of the MR curve).

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921213

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