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(Solved): An economy is experiencing 6% inflation and 5% unemployment. Show this on a Philipps curve. Now the ...



An economy is experiencing 6% inflation and 5% unemployment. Show this on a Philipps curve. Now the minimum wage rate is raised by 30%. Show what would happen to the economy in such a situation and then come back to the Phillips curve and show the new approximate position of the economy (assume new reasonable rates of inflation and unemployment). Draw diagrams neatly and label everything including all shifts and movements.



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