Friedman Phelps Model

Without short-run Monetary Policy

Inputs

Natural rate of unemployment:

%

Expected inflation rate:

%

Shock parameter:

%

Cyclical sensitivity:

decimal

Outputs (long-run)

Unemployment:

%

Inflation:

%

With short-run Monetary Policy

Inputs

Inflation:

%

Short-run Output

Unemployment:

%

Long-run Output

Expected inflation rate:

%

Unemployment:

%

Inflation:

%