If moderate inflation takes place, and households believe that this increase in the price level is only

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If moderate inflation takes place, and households believe that this increase in the price level is only temporary, they may delay some purchases until the price level falls back to its initial level. This is most commonly observed with durable goods, like washing machines and refrigerators. Would you expect this behavior to shift the Aggregate Demand curve?

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Principles Of Macroeconomics

ISBN: 9781292303826

13th Global Edition

Authors: Karl E. Case,Ray C. Fair , Sharon E. Oster

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