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Choose the most plausible time order regarding the response of the economy to a cost-push (inflationary) shock based on the standard New Keynesian model. Choose
Choose the most plausible time order regarding the response of the economy to a cost-push (inflationary) shock based on the standard New Keynesian model. Choose one. (i) The nominal interest rate increases. (ii) The inflation rate increases. (iii) The output gap decreases. O a. (i) -> (ii) -> (iii) O b. (i) -> (ili) -> (ii) O c. (ii) -> (i) -> (iii) O d. (ii) -> (iii) -> (i) O e. (iii) -> (1) -> (ii) Of. (iii) -> (ii ) -> ( i)
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