Suppose the public believes that a newly announced anti-inflation program will work and so lowers its expectations

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Suppose the public believes that a newly announced anti-inflation program will work and so lowers its expectations of future inflation. What will happen to aggregate output and the inflation rate in the short run?

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Economics of Money Banking and Financial Markets

ISBN: 978-0134733821

12th edition

Authors: Frederic S. Mishkin

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Question Posted: Nov 30, 2018 08:07 AM

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Suppose the public believes that a newly announced anti-inflation program will work and so lowers its expectations

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The inflation rate will be lower than it otherwise would be and aggr...View the full answer

Economics of Money Banking and Financial Markets

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