How is the short-run and long-run relationship between inflation and unemployment look like in a graph? Also, How much cyclical unemployment is necessary to reduce inflation by 5%. Using Okun%26#039;s law, what is the sacrifice ratio? If inflation is running at 10% and the Fed wants to reduce it to 5% what two scenarios can the Fed use to achieve that goal?
What is the natural rate of unemployment given the equation 袩 = 袩-1 - 0.5(u-0.06)?credot siosse
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