Business, 30.04.2021 22:10 rachael382

Suppose that when the unemployment rate is at 6% and inflation is at 1%, the Austrian government tries to boost the economy by the expansionary monetary policy. On the following year, inflation increases to 3% and unemployment was down to 4%. The government discusses this policy implications with two economists: the Keynesian economist who believes in the original Phillips curve and the Monetarist who believes in the expectation-augmented Phillip curve. a. For the first economist, please use the information above to illustrate the original Phillips curve of the Austrian economy. What is the implication of this model?

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Suppose that when the unemployment rate is at 6% and inflation is at 1%, the Austrian government tri...

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