Phillips curves describe the different policy trade-offs, Econometrics

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Phillips curves describe the different policy trade-offs

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?

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Econometrics: Phillips curves describe the different policy trade-offs

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Econometrics: Phillips curves describe the different policy trade-offs

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