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• Still, money impression will not properly take into account the fresh mechanism at the job in the Phillips bend.
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Another dining table illustrates the important points from difference in moderate words and you will actual terms. Even in a time period of deflation (shedding prices) workers are going to fight affordable salary cuts because of the psych0logical cost of viewing a fall in moderate earnings. Thus inside the a period of deflation, we can end up getting actual wage jobless – jobless because of earnings over the equilibrium.

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