In the long run: a. Current output equals potential output, which is the level of output the
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In the long run:
a. Current output equals potential output, which is the level of output the economy produces when its resources are used at normal rates.
b. Inflation equals money growth minus growth in potential output.
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Related Book For 
Money Banking And Financial Markets
ISBN: 9781260226782
6th Edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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