Exhibit 25-3
-Answer the questions below:
(A) Is there a urique rate of inflation that carresponts to lang-run equalibrum? Exgalan. What determines the rate of inflation when the econory is at lang-run equilibrium?
(B) Suppose the central bark is interested in stimulating Jrowth in the ecanamy. Shauld it ain far a higher or lower target infletian rate? Will higher frowth be achieved in the shart run and the long run?
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