Question: Describe the events that could create this sequence. Has the economy experienced demand-pull inflation, cost-push inflation, expected inflation, or none of these? An economy has

Describe the events that could create this sequence. Has the economy experienced demand-pull inflation, cost-push inflation, expected inflation, or none of these?
An economy has an unemployment rate of 4 percent and an inflation rate of 5 percent a year at point A in Figure 28.8. Some events occur that move the economy in a clockwise loop from A to B to D to C and back to A.

Inflation rate (percent per year) 2

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