Term
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Definition
| A curve that shows the relationship between the inflation rate and unemployment rate when the natural unemployment rate and theexpected inflation rate remain constant |
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Term
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Definition
| Fir each percentage point that the unemployment rate is above the natural unemplyment rate, real GDP is 2 percentage points below potential GDP |
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Term
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Definition
| The vertical Line that shows the relationship between inflation and unemployment when the economy is at full employment |
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Term
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Definition
| The inflation rate that people forecast and use to set the money wage rate and other money prices |
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Term
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Definition
| The proposition that when the mony growth rate changes, the unemployment rate changes temporarilyand eventually returns to the natural unemployment rate |
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