Suppose the inflation rate has been 15 percent for the past 4 years. The unemployment rate is currently at the natural r

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answerhappygod
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Suppose the inflation rate has been 15 percent for the past 4 years. The unemployment rate is currently at the natural r

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Suppose the inflation rate has been 15 percent for the past 4
years. The unemployment rate is currently at the natural rate of
unemployment of 5 percent. The federal Reserve decides that it
wants to permanently reduce the inflation rate to 5 percent. How
can the FED use monetary policy to achieve this objective? Be sure
to use a Philips curve graph in yoru answer.
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