In the following examples, would the classical model of the price level be relevant? a. There is

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In the following examples, would the classical model of the price level be relevant?

a. There is a great deal of unemployment in the economy and no history of inflation.

b. The economy has just experienced five years of hyperinflation.

c. Although the economy experienced inflation in the 10% to 20% range three years ago, prices have recently been stable and the unemployment rate has approximated the natural rate of unemployment.

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Macroeconomics

ISBN: 978-1319120054

3rd Canadian edition

Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson

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