Question:
What do Critics say about the Short Run Phillips Curve? -Link to Adaptive Exceptions
Author: eric_galvaoAnswer:
-Some say it isn't so Simple. As Inflation goes up, people seem for it to Remain High and therefore Change their Behaviour Accordingly -People thus are using the Past to Predict what will Occur in the Future. If Inflation is High Today, then they'll think it'll be High Tomorrow. Thus High Inflation may be Embedded in an Economy, as the Government is trying to Reduce it
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