a. Explain the role that inflation expectations play in creating a self-fulfilling prophecy. b. Explain Bernankes predictions
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b. Explain Bernanke’s predictions about the impact of the 2008 oil price shock as compared to the 1970s shock.
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If peoples inflation expectations rise they demand higher money wage rate...View the full answer
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Related Book For
Macroeconomics Canada in the Global Environment
ISBN: 978-0321778109
8th edition
Authors: Michael Parkin, Robin Bade
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