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10 cards from this deck
Pay in dollar terms, not adjusted for inflation
Simultaneous rising inflation and unemployment
Ability of economy's exports to compete in global markets
Exchange rates adjust to reflect real purchasing power
2-3% per annum
Inverse short-run relationship between unemployment & inflation
Monetary policy
Adjusting rates to prevent inflation before it emerges
Allows price adjustments, avoids deflation risks
Creates uncertainty, discourages long-term investment
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