04:11Expert Q&AallDone2. (a) Starting from the IS equation, derive an expression for the aggregate demandcurve.(b) Starting from the wage and price setting problems, derive a general expressionof aggregate supply and the Phillips Curve.(c) Discuss how the past inflation dynamics might affect the Phillips Curve formunder adaptive expectations.(d) What changes in (c) if we consider rational expectations?

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2. (a) Starting from the IS equation, derive an expression for the aggregate demand curve.

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04:11
Expert Q&A
all
Done
2. (a) Starting from the IS equation, derive an expression for the aggregate demand
curve.
(b) Starting from the wage and price setting problems, derive a general expression
of aggregate supply and the Phillips Curve.
(c) Discuss how the past inflation dynamics might affect the Phillips Curve form
under adaptive expectations.
(d) What changes in (c) if we consider rational expectations?

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