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Aideen Reyes
on Nov 16, 2024

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Just as the aggregate-demand curve slopes downward only in the short run, the trade-off between inflation and unemployment holds only in the long run.

Aggregate-Demand Curve

A curve that shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level

Trade-Off

A situation that involves losing one quality or aspect of something in return for gaining another quality or aspect.

Inflation And Unemployment

Economic phenomena, with inflation being the rate at which the general level of prices for goods and services is rising, and unemployment representing the portion of the workforce that is not currently employed but actively seeking employment.

  • Assimilate the fundamentals of the Phillips curve in immediate and extended durations.
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Aubrie PacheNov 16, 2024
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