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e central banks los ellipses and Phillips curves to derive the MR curve in the following 3. Use the central banks cases (a) When a 1 and B1 (b) When α 1 and β < 1 (c) When a < 1 and B1 In cases (b) and (c) how can the changes in a and B be interpreted? What do they suggest for the central banks best response to an inflation shock?

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