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During the Early Phases of Recovery from Stagflation

Question 20

Multiple Choice

During the early phases of recovery from stagflation,


A) inflation always begins to fall immediately.
B) inflation may rise or fall depending on whether or not inflationary expectations push prices up harder than excess supply pressures push them down.
C) output begins to increase immediately in all but very exceptional cases.
D) a and c.
E) b and c.

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