Introduction/Possible Activities:

3. Drawing a correctly labeled graph of SRPC and LRPC in equilibrium.
4. Interpreting changes economic conditions and their effects on the short and long run Phillips Curves.
a. Show the process of long run adjustment for Phillips curves, including connections to AS/AD diagrams.
b. Explaining long run adjustments including the role of expected and actual inflation.

Learning Activities:

1. Watch the video below and take notes.

2. Complete the following worksheet after having watched the video. Try from memory first before using your notes: