Assume the economy is initially in a long run equilibrium. a. Use the AD-AS and the Phillips curve diagrams to show the
Posted: Wed Jul 06, 2022 6:22 pm
Assume the economy is initially in a long run equilibrium. a. Use the AD-AS and the Phillips curve diagrams to show the short-run effects on prices (inflation) and output (unemployment) if a hurricane badly hit the economy's agricultural production. b. In order to stabilize prices what would central bank do with monetary policy (a)?