Principles of Economics- Mankiw (5th) 763

Principles of Economics- Mankiw (5th) 763 - rate hypothesis...

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CHAPTER 33 THE SHORT-RUN TRADEOFF BETWEEN INFLATION AND UNEMPLOYMENT 787 of disinflation by letting their central banks make decisions about monetary policy without interference from politicians. Why might this be so? 11. Suppose Federal Reserve policymakers accept the theory of the short-run Phillips curve and the natural-
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Unformatted text preview: rate hypothesis and want to keep unemployment close to its natural rate. Unfortunately, because the natural rate of unemployment can change over time, they arent certain about the value of the natural rate. What macroeconomic variables do you think they should look at when conducting monetary policy?...
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This note was uploaded on 08/01/2010 for the course ECON 120 taught by Professor Abijian during the Spring '10 term at Mesa CC.

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