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a. What costs are associated with perfectly anticipated inflation? Do these costs change as the rate of inflation changes? b. What costs are associated with

a. What costs are associated with perfectly anticipated inflation? Do these costs change as the rate of inflation changes?

b. What costs are associated with imperfectly anticipated inflation? Discuss them carefully. Who loses, and who gains, when inflation is higher than we expect?

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a Cost of perfectly anticipated inflation Perfectly Anticipated Inflation When the inflation can be predicted it is called perfectly anticipated inflation If an economy has been experiencing a given r... blur-text-image

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