Inflation is about 10 percent and the unemployment rate is about 14 percent. Earlier this month Irans
Question:
a. If Iran removes the subsidies on necessities and consumers don’t know what the higher prices will be, draw a graph to show the most likely path of inflation and unemployment.
b. If Iran removes the subsidies and announces the new prices so that consumers know what they are, draw a graph to show the most likely path of inflation and unemployment.
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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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