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Unformatted text preview: Principle 9: Prices rise when the government prints too much money. Inflation: increases in the general level of prices. Principle 10: Society faces a short-run tradeoff between inflation and unemployment In the short run (1-2 years), many economic policies push inflation and unemployment in opposite directions Other factors can make this tradeoff more or less favorable, but the tradeoff is always present....
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- Fall '10