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10 cards from this deck
Low inflation & low unemployment hard to achieve together
High inflation alongside high unemployment & stagnation
Baseline unemployment in healthy economy (frictional+structural)
Vertical line at natural rate of unemployment (UnU_nUn)
Workers/firms anticipate inflation & adjust, creating it
When temporarily higher unemployment becomes permanent
Only accounted for demand-pull, ignored cost-push inflation
Only permanently higher inflation, no lasting unemployment cut
2−3%2-3\%2−3% annual inflation
Supply-side & microeconomic policies, not demand management
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