Thanks for your reply. But that's not really what I needed though. I had to know how the govt lowers inflation through tightening monetary policy, which lowers inflation slightly, but massively increases unemployment. And then the slow recovery through workers having to accept lower wages, ending up back on the long-run Phillips curve, and creating a new short-run Phillips curve.
Anyways, I think I understood it enough. Just had my exam this morning, and I think it went ok. There was only a small Phillips Curve question, and it seemed to go ok.
