If the monetary policymaker keeps trying to keep output above the natural rate

Name: If the monetary policymaker keeps trying to keep output above the natural rate
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Question

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When a monetary policymaker attempts to keep output above the natural rate, it typically results in persistent inflation due to increased demand, rising wages as the labor market tightens, and eventually, despite these efforts, output tends to return to its natural rate as the economy self-corrects over time.

If the Monetary Policymaker Keeps Trying to Keep Output Above