Government would have to do to keep the unemployment

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Reference no: EM1311847

Q. "Suppose the economy has been experiencing zero inflation also it has five percent unemployment for numerous years. Government decides to lower the unemployment percentage by generating some inflation. You need to do the following:

1. Using the Graphed tool, make a graph elucidate what the short-run effects would be also Illustrate what would happen in the long run. To save the graph, press the Alt+PrintScrn keys simultaneously. Open a Word document also inserts the image by pressing the Ctrl+V keys simultaneously.

2. Give reasons to elucidate what the government would have to do to keep the unemployment rate at 3 percent.

Reference no: EM1311847

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