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The document discusses the relationship between inflation, real GDP, and the Phillips curve. It shows graphs of price and quantity for perfectly elastic supply curves and elastic supply curves. The graphs illustrate how price and quantity are affected by shifts in demand.

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Phillips CurveInflation (△PL)0Real GDP
TITLEPrice0Quantity
Perfectly Elastic SupplyPriceP1SD1D20Q1Q2Quantity
An Elastic Supply CurvePriceD1D20Q1Q2Quantity

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