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Starting from a Long-Run Equilibrium,immediate or Eventual Increases in the Rate

Question 41

Multiple Choice

Starting from a long-run equilibrium,immediate or eventual increases in the rate of inflation may be the result of any of the following EXCEPT


A) an upward inflation shock.
B) a positive shock to potential output.
C) an increase in government purchases.
D) a monetary "easing."
E) a tax decreasE.

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