Chapter 14 Assignment.docx - 1 The Phillips curve for the...

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1.The Phillips curve for the United States in the 1960s becomes very steep after unemployment drops below 4%, and rather shallow as unemployment exceeds 6%. Why is a typical Phillips curve shaped thisway?
2.Does the long-run Phillips curve make it difficult (if not impossible) for policymakers to increase output and employment beyond full employment in the long run.

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