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Consider the following information: The output gap is -1% Inflation responds with 0.6 with respect to the output gap (b in the formula). There are
Consider the following information: The output gap is -1% Inflation responds with 0.6 with respect to the output gap (b in the formula). There are no supply shocks. Expected inflation is 3% How much is unexpected inflation? Write your answer as a percentage (%) with two decimals, round to two decimals
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Principles of economics
Authors: N. Gregory Mankiw
6th Edition
978-0538453059, 9781435462120, 538453052, 1435462122, 978-0538453042
