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Initially, an economy is at its long-run equilibrium. But then the economy is hit by a shock, causing its price level to go up and

Initially, an economy is at its long-run equilibrium. But then the economy is hit by a shock, causing its price level to go up and its unemployment to fall below its natural rate. Explain:

(i) what kind of shock hits the economy, and

(ii) what kind of inflation the economy is experiencing.

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