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For each of the following, determine whether inflation expectations, demand-pull inflation, or cost-push inflationand hence inflation overallwill change. a. A rapid influx of foreign investment
For each of the following, determine whether inflation expectations, demand-pull inflation, or cost-push inflationand hence inflation overallwill change.
a. A rapid influx of foreign investment causes the output gap to become more positive.
b. The president unexpectedly announces a tariff on aluminum and steel.
Make the detailed explanation and analysis. With the knowledge of "The Phillips Curve and Inflation" in Macroeconomics.
Thank you so much.
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