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Which of the Following Is Consistent with Constant Inflation of 2

Question 114

Multiple Choice

Which of the following is consistent with constant inflation of 2%: expected future inflation of ________,output-gap inflation of ________,and supply-shock inflation ________.


A) 2%; 2%; 2%
B) 2%; 0%; -2%
C) 2%; 0%; 0%
D) 0%; 1%; 1%
E) 0%; 0%; 2%

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