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Suppose that short-run output, Yt , is -0.1 in period t. The inflation shock is zero, the magnitude of inflation's sensitivity to the deviation of

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Suppose that short-run output, Yt , is -0.1 in period t. The inflation shock is zero, the magnitude of inflation's sensitivity to the deviation of output from potential is 3. Last period's inflation was 2%. What is the change in the inflation rate between last period and this period a. -30%. b. 3%. c. 2.3%. d. -0.3%. e. -1.7%

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