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Consider the AD/AS model below with a constant rate of inflation. No exogenous AD or AS shocks are occurring. FIGURE 29-1 Refer to Figure 29-1.
Consider the AD/AS model below with a constant rate of inflation. No exogenous AD or AS shocks are occurring. FIGURE 29-1 Refer to Figure 29-1. Which of the following statements about this AD/AS diagram is true? Actual inflation equals expected inflation. Expected inflation exceeds actual inflation. Actual inflation equals output gap inflation. Expected inflation equals output gap inflation. Actual inflation exceeds expected inflation
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