Question: Beginning at long - run equilibrium in the dynamic model of AD / AS , if the centralbank permanently reduces its inflation target, then in

Beginning at long-run equilibrium in the dynamic model of AD/AS, if the centralbank permanently reduces its inflation target, then in the initial period of thechange output ______ and inflation ______.a. Increases ; increaseb. Increases ; decreasesc. Decreases ; decreasesd. Decreases ; increases

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