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    Principles of Economics Study Set 8
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    Exam 35: The Short-Run Tradeoff Between Inflation and Unemployment
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    Assuming That Rational Expectations Theory Does Not Hold, If a Central
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Assuming That Rational Expectations Theory Does Not Hold, If a Central

Question 44

Question 44

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Assuming that rational expectations theory does not hold, if a central banks attempts to reduce the inflation rate what happens to the unemployment rate in the short-run?

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