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  3. Study Set
    Principles of Macroeconomics Study Set 8
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    Exam 23: Six Debates Over Macroeconomic Policy: Should the Central Bank Aim for Zero Inflation
  5. Question
    A Permanent Reduction in Inflation Would
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A Permanent Reduction in Inflation Would

Question 3

Question 3

Multiple Choice

A permanent reduction in inflation would


A) permanently reduce shoeleather costs and permanently lower unemployment
B) permanently reduce shoeleather costs and temporarily raise unemployment
C) temporarily reduce shoeleather costs and temporarily lower unemployment
D) temporarily reduce shoeleather costs and temporarily raise unemployment

Correct Answer:

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