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1. Digital Study Guide, written by William Walstad
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After reading this chapter, you should be able to:
Explain the relationship between short-run aggregate supply and long-run aggregate supply.
Discuss how to apply the "extended" (short-run/long-run) AD-AS model to inflation, recessions, and economic growth.
Explain the short-run trade-off between inflation and unemployment (the Phillips Curve).
Discuss why there is no long-run trade-off between inflation and unemployment.
Explain the relationship between tax rates, tax revenues, and aggregate supply.
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