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- What happens in the Phillips Curve diagram when the AS curve shifts?What is the short-run relationship between the unemployment rate and inflation rate as explained by the economist Phillips?Phillips Curve graph, aggregate model(side-by- side)- show the relationship between the Phillips model and the aggregate model if stagflation hits the economy(a supply shock) Draw a graph
- Graphically derive short run Phillips curve with the help of aggregate demand and supply and demand.What is stagflation? How may it affect the Phillips Curve? What policy measures may be taken to reduce stagflation?What is the shape of the neoclassical long-run Phillips curve? What assumptions do economists make that lead to this shape?
- draw a single correctly labeled graph with both the short run and long run Phillips curves. Label the initial short run equilibrium as point XDoes the short-run Phillips curve have a positive or negative slope? Explain how this slope is derived.Assume that the United States economy is currently in a recession in a short-run equilibrium. Draw a correctly labeled graph of the short-run and long-run Phillips curves. Use the letter X to label a point to represent the current state of the economy in recession.
- "As the economy moves upward along its aggregate supply curve, the economy also moves upward along its short-run Phillips curve." Is the previous statement correct or incorrect?What’s the difference between how a Keynesian economist would sketch an AS curve and a Phillips curve, and how a neoclassical economist would sketch an AS curve and a Phillips curve? How is the shape of the different AS curves linked to the different shape of the Phillips curves?Compare the short-run Phillips Curve and the long-run Phillips Curve.