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    Macroeconomics Study Set 67
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    Exam 14: New Keynesian Economics: Sticky Prices
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    For the Central Bank, Loss Increases as
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For the Central Bank, Loss Increases as

Question 25

Question 25

Multiple Choice

For the central bank, loss increases as


A) the output gap increases.
B) the Phillips curve gets steeper.
C) inflation gets closer to the inflation target.
D) the output gap decreases.
E) the output demand curve becomes less steep.

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