An article in the Economist observes that a sudden unanticipated spurt of inflation could lead to rapid
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a. Briefly explain the reasoning behind this statement.
b. Does it matter whether a spurt of inflation is unanticipated? Might different economists provide different answers to this question? Briefly explain.
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a The reasoning is that an unanticipated increase in inflation will lower the real w...View the full answer
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