Suppose the government misjudged the natural rate of
unemployment to be much lower than it actually is, and thus,
undertake expansionary fiscal and monetary policies to try to
achieve the lower rate. Explain why these policies might at first
succeed and the outcome in the long run. [HINT: SR Philip Curve,
and LR Philip Curve]. b). Discuss briefly, the mechanism by which
monetary policy affects GDP and the price level in an economy. c).
Explain the relationship between tax rates,...