Workers expect inflation to be 20 percent and the economy is fully employed. Then the Fed acts
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Workers expect inflation to be 20 percent and the economy is fully employed. Then the Fed acts to reduce the inflation rate to 10 percent.
What will happen in the short run? In the long run?
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Workers will contract for 20 percent higher wages but when prices go up only 10 ...View the full answer
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Vivek Gupta
I am an honours graduate in Business, Accounting and Finance from the University of Cakcutta. I have also done a diploma in Banking Accounting and Finance from National School of Hotel Management (NSHM). I started teaching secondary level students in 2014 with 4 students of state board of West Bengal. Gradually, I started getting offers to teach students of higher secondary students of not only the state board but also the CBSE board. So, I opened a small tuition centre at home where I taught students in different batches. After graduation, I also started teaching college students of Commerce background. I have taught students of Delhi Public School, Scottish Church School, Gyan Bharti, Holy Child School, Jain vidyalaya and also students of Colleges like my own College Goenka College, Jaipuria College, Kasiswari College etc. Currently, I am tutoring my students and they have performed well in their Examinations, some of them even secured 1st class position in their respective colleges.
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