Macroeconomics
Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Chapter 12, Problem 9RQ
To determine

To know:Two strategies for reducing expected inflation rapidly and pros and cons of these strategies.

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What costs are associated with imperfectly anticipated inflation? Discuss them carefully. Who loses, and who gains, when inflation is higher than we expect?
Considering the impacts of expected inflation, how might the purchasing power of consumers be affected in the short term?
Why are we typically more concerned with unanticipated inflation than we are with fully anticipated inflation?
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