Suppose that the economy is at the natural rate of output.Explain how a positive supply shock,followed by a more restrictive monetary policy,allows policymakers a painless way to reduce inflation.

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The Answer of Suppose that the economy is at the natural rate of output.Explain how a positive supply shock,followed by a more restrictive monetary policy,allows policymakers a painless way to reduce inflation.

Suppose That the Economy Is at the Natural Rate of Output.Explain