New Classical theory suggests only temporary deviations from a vertical Phillip Curve

New Classical theory suggests only temporary deviations from a vertical Phillips Curve. What factors may cause such deviations?

Can any one help me with this question. I'm currently working on previous exam questions and i don't know how to answer this one. I'm trying to work through as many exam questions as possible to prepare myself for the final exams, so please do help if you can.

(edited 12 years ago)

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