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Research unemployment and inflation.
Use your course materials and the Internet for your research. Use the following to guide your research:
Examine articles discussing unemployment and inflation rates within the last 12 months.
Step 2 Answer the questions below.
What are the trends in the unemployment and inflation rates from the last 12 months?
What government policies have been announced in response to recent changes in unemployment and inflation?
How do long-term and short-term Phillips curves compare for the unemployment and inflation rates within the last 12 months?
Is there evidence of a Phillips curve trade-off between these two variables? Why or why not?
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GDP growth is approximately 1.5 percent and has been at that level for two years. Inflation, as measured by both the CPI and GDP deflator has been at approximately 1-2 percent for the last two years.
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