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Workers and firms are currently expecting the price level to increase from 110 to 114.The Federal Reserve then announces that it will be reducing the growth rate of the money supply.If the Fed's announcement is credible,and firms and workers have rational expectations,describe how the expectations of firms and workers will be affected and how the change in expectations will affect the unemployment rate.
Soviet Union
A former federal socialist state in eastern Europe and northern Asia, existing from 1922 to 1991, known for its communist government.
Ethnically Homogeneous
Referring to a population or community consisting of members who share the same ethnic background.
Former Soviet Union
The collection of republics and territories that constituted the Union of Soviet Socialist Republics (USSR), which existed from 1922 until its dissolution in 1991.
1917 Revolution
A significant political upheaval in Russia that led to the downfall of the czarist regime and the rise of the Soviet Union.
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