As monetary policymakers become more concerned with infl ation stabilization, the slope of the aggregate demand curve

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As monetary policymakers become more concerned with infl ation stabilization, the slope of the aggregate demand curve becomes fl atter. How does the resulting change in the slope of the aggregate demand curve help stabilize infl ation when the economy is hit with a temporary negative supply shock? How does this aff ect output? Use a graph of aggregate demand and supply to demonstrate.

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The Economics Of Money Banking And Financial Markets

ISBN: 978-0134376936

6th Canadian Edition

Authors: Frederic S Mishkin ,Apostolos Serletis

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