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Assuming the inflation-targeting model (in Figure 1) correctly describes the economy: explain why an attempt by the government to let output move above Ye,
Assuming the inflation-targeting model (in Figure 1) correctly describes the economy: explain why an attempt by the government to let output move above Ye, incurring higher inflation, will not work beyond the very short term. Interest rate (%)| Inflation (%)| Figure 1 IS The inflation-targeting model Output IVPC PC = PK MR Output
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
