Discuss what forces shift the long-run phillips curve


Problem

1. (Potential GNP) Why is it hard for policy makers to decide if the economy is operating at its potential output level? Why is this uncertainty a problem?

2. (Phillips Curves) Describe the different policy trade-offs implied by the short-run Phillips curve and the long-run Phillips curve. What forces shift the long-run Phillips curve?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Discuss what forces shift the long-run phillips curve
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