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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Easy beginner econ question. Thank you!

Transcribed Image Text:Suppose an economy is operating with a recessionary gap. In this case, policymakers would seek
to move the economy
vertically up the Phillips curve toward an unemployment rate that is closer to the natural rate of
unemployment.
vertically back down the Phillips curve toward an unemployment rate that is closer to the natural rate of
unemployment.
vertically back down the Phillips curve toward an unemployment rate that is further from the natural rate
of unemployment.
vertically up the Phillips curve toward an unemployment rate that is further from the natural rate of
unemployment.
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