Macroeconomics 1. Disruption to the supply of natural gas to Atlantis has caused a surge in energy prices. While Atlantis has had a period of inflation around 2% for several years, the current rate of inflation is 6%. A. What type of shock has affected Atlantis and how has it fueled inflation? B. Explain what is meant by the natural rate of unemployment and explain why the long-run Phillips curve is vertical at that rate. Why is inflation constant in the long run equilibrium?

Macroeconomics 1. Disruption to the supply of natural gas to Atlantis has caused a surge in energy prices. While Atlantis has had a period of inflation around 2% for several years, the current rate of inflation is 6%. A. What type of shock has affected Atlantis and how has it fueled inflation? B. Explain what is meant by the natural rate of unemployment and explain why the long-run Phillips curve is vertical at that rate. Why is inflation constant in the long run equilibrium?

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter35: The Short-Run Trade-off Between Inflation And Unemployment

Section: Chapter Questions

Problem 3CQQ

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