CHAPTER12ThePhillipsCurveandExpectationsQuestions•WhatisthePhillipscurve?•HowhasthenaturalrateofunemploymentchangedintheU.S.overthepasttwogenerations?•Whatdeterminestheexpectedrateofinflation?•Howcanwetellhowexpectationsofinflationareformed--whethertheyarestatic,adaptive,orrational?Questions•Howusefulistheaggregatedemand-aggregatesupplyframework--theIS-LMmodelandthePhillipscurve--forunders...