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According to the New Classical Model,the Output Cost of Reducing

Question 39

Multiple Choice

According to the new classical model,the output cost of reducing inflation


A) is the costs of the revenue lost by printing less money.
B) is the lost income from the large recession that will occur as aggregate demand falls.
C) may be small if the policy to reduce inflation is seen as credible by the public.
D) will be zero if it is unanticipated.

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