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Describe How Inflationary Expectations Can Take on a Life of Their

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Essay

Describe how inflationary expectations can take on a life of their own and thwart policymakers. Use a graph to support your response (begin with full employment and inflation with inflationary expectations equal to zero).


Definitions:

Disciplined

Being disciplined refers to showing a controlled form of behavior, often involving obeying rules or a strict regimen.

Antagonistic

Characterized by opposition or hostility towards others, often resulting in conflict or resistance.

Acquiescent

Willing to accept or agree to something without protest or objection.

Ruthless

Showing no pity or compassion for others; harsh or merciless in pursuit of goals, often at the expense of others.

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