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Suppose people hold adaptive expectations about inflation. Recently, inflation has held steady at 1.4%. Which of the following scenarios would lead to lower unemployment according
Suppose people hold adaptive expectations about inflation. Recently, inflation has held steady at 1.4%. Which of the following scenarios would lead to lower unemployment according to the expectations-augmented Phillips curve? Group of answer choices Lower than 1.4% inflation Exactly 1.4% inflation Higher than 1.4% inflation
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