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Business, 06.12.2021 22:20 ykpwincess

The traditional short-run Phillips curve implies a powerful role for monetary policy. According to the theory, place the events in order based on what happens when the central bank unexpectedly expands the money supply. a. Aggregate demand increases.
b. The central bank injects new money into the money supply.
c. The inflation rate rises, and the unemployment rate falls to a new equilibrium where u < u*.
d. The economy is in equilibrium at full employment (u = u*).

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