During the first half of 2010, Bank of Canada officials discussed the possibility of increasing interest rates

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During the first half of 2010, Bank of Canada officials discussed the possibility of increasing interest rates as away of fighting potential increases in expected inflation. If the public came to expect higher inflation rates in the future, what would be the effect on the short-run aggregate supply curve? Show your answer, using an aggregate demand and supply graph.

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The Economics of Money Banking and Financial Markets

ISBN: 978-0321785701

5th Canadian edition

Authors: Frederic S. Mishkin, Apostolos Serletis

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