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Business, 22.04.2020 02:30 elizaa94

The economy is initially at the natural rate of unemployment, which is 5%, when the authorities decide to bring the unemployment rate down to 3% and hold it there forever. With theta equal to zero, this will yield a 6% rate of inflation every year. Now suppose that in year (tplus6), theta changes to 1. theta might increase in this way because

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