Policy space creating with floating exchange rate

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Reference no: EM131393728

1. The downward slope of the Phillips curve suggests that

a)an increase in the price level will depress nominal wages.

b) policymakers face a trade-off between inflation and unemployment.

c) an increase in the price level will increase the money supply.

d) a decrease in the money supply will stimulate aggregate demand.

2. Demonstrate and explain the "policy space" creating with a floating exchange rate (intermediate macroeconomics)

Reference no: EM131393728

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