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    Exam 28: Inflation: Causes and Consequences
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    In the New Keynesian View, a Disinflation Policy
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In the New Keynesian View, a Disinflation Policy

Question 44

Question 44

Multiple Choice

In the new Keynesian view, a disinflation policy


A) will almost always result in a recession.
B) will rarely be credible.
C) should use the cold turkey, rather than the gradual, approach.
D) shifts the LRAS curve.

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