Discuss the relationship between the long-run AS curve and the long-run Phillips curve.

A. Explai Show more When you look at monetary or fiscal policy its important to consider the Phillips curve. A. Explain what the short-run Phillips curve is and why it is important in thinking about economic policy. (4 points) B. Explain what stagflation is and why stagflation is inconsistent with the idea of a Phillips curve. (4 points) C. Explain the short-run relationship between the Phillips curve and changes in aggregate demand in the AD/AS model. (3 points) D. Discuss the relationship between the long-run AS curve and the long-run Phillips curve. (3 points) E. Explain the difference between the short-run and long-run Phillips curves. What do they imply about the tradeoff between inflation and unemployment in the short run and in the long run? (5 points) Show less

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Approximately 250 words