a  How is the Phillips curve related to aggregate supply? b. What are the differences between demand-pull inflation and cost-push inflation? c. On what market imperfection does each aggregate supply theory rely? What do the theories have in common?

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Q: 2. Short-run Aggregate Supply and the Phillips Curve Suppose that the economy is populated by two…

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Q: 1. Aggregate demand, aggregate supply, and the Phillips curve In the year 2020, aggregate demand and…

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A: The  purchasing power of people declines with a rise in price level is  referred to as inflation. It…