Asked by Fallon Elise on Jun 11, 2024
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A decrease in the growth rate of the money supply eventually causes the short-run Phillips curve to shift right.
Money Supply Growth Rate
The rate at which the total amount of money in circulation or in existence in a country grows.
Short-Run Phillips Curve
A graphical representation showing the inverse relationship between inflation and unemployment rates in the short term.
Shift Right
In economics, this refers to an increase in supply or demand in a market model, leading to a new equilibrium.
- Comprehend the connection between the expansion of money supply, inflation, and unemployment over an extended period.
- Gain an understanding of the Phillips curve's concept for short and long durations.
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Learning Objectives
- Comprehend the connection between the expansion of money supply, inflation, and unemployment over an extended period.
- Gain an understanding of the Phillips curve's concept for short and long durations.
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