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It Is Difficult to Eliminate a Constant Inflation

Question 48

Multiple Choice

It is difficult to eliminate a constant inflation.A major reason it is so difficult is that inflationary expectations


A) make it impossible to stop the rightward shift of the AD curve.
B) make it impossible to reduce aggregate expenditure.
C) keep shifting the AS curve upward.
D) keep shifting the AS curve downward.
E) cannot be influenced by monetary policy.

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