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Suppose there are two economies: A an B where utA=6% and utB= 5%

1. Given this information, what can you say, if anything, about the change in inflation in these two economies? Specifically, what happened to t (relative to t-1) in these two economies?
2. Suppose tA < ?t-1A. Given this information, where is utA relative to the natural rate of unemployment?
3. Suppose tB > ?t-1B. Given this information, where is utB relative to the natural rate of unemployment?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9472707

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