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Explain What Happens to the Inflation Adjustment Line in the Long

question 75

Essay

Explain what happens to the inflation adjustment line in the long run in each of the following cases.
(A) The ecanomy sinks inta ereces5ian.
(B) Firms expect the Fed will addust monetary policy and allow inflation to iise fram 2 percent to 4 percent.
(C) OPEC successfully daubles the price of ail an the market.
(D) Congress cuts taxes.
(E) Potential GDp increases.


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