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Suppose that the central bank for this economy has decided that inflation is too high and thus wants to decrease the inflation rate by 6
Suppose that the central bank for this economy has decided that inflation is too high and thus wants to decrease the inflation rate by 6 percentage points per year. A reduction in the rate of inflation is known as . To reduce inflation from 8% to 2% in the short run, the central bank would have to accept an unemployment rate of %
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