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6 Cards in this Set
- Front
- Back
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short-run Phillips curve
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a curve that suggests a negative relationship between inflation and unemployment
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An economy with a ________ gap would have high unemployment and little or no inflation. An economy with an _______ gap would have very little unemployment and a higher rate of inflation
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-recessionary
-inflationary |
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Phillips phase
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a period when inflation and unemployment are inversely related
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stagflation phase
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A period of rising inflation and unemployment
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recovery phase
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a period in which both unemployment and inflation fall
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In a Phillips Phase: An increase in aggregate demand means _____ employment and ____ inflation
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-lower
-higher |
