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bedau bedau
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6 years ago
Draw two SP curves intersecting LP; call the upper intersection point A and the lower point B. The Fed promises to reduce inflation while maintaining natural unemployment. If the public believes the Fed, the economy moves from ________. Then if the Fed turns out to be time-inconsistent, breaking its promise and trading off ________ inflation for lower unemployment, the public revises the way it forms inflation expectations so that in the long run the economy stays at ________.
A) A to B, lower, B which is superior to A
B) A to B, higher, A which is inferior to B
C) A to B, lower, A which is superior to B
D) B to A, higher, B which is superior to A
E) B to A, lower, B which is inferior to A
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Macroeconomics

Macroeconomics


Edition: 12th
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thecromthecrom
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bedau Author
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6 years ago
Helped a lot
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Correct Slight Smile TY
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This helped my grade so much Perfect
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