Inflation can be caused by rapid growth of aggregate demand or by sluggish growth of aggregate supply.
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Q38: Indexing seeks to reduce the social costs
Q39: Inflation targeting requires monetary policymakers to rely
Q40: If expectations are rational, inflation can be
Q41: If economic fluctuations originate on the supply
Q42: Restricting demand will lower inflation but
A)aggravate the
Q44: The economy's self-correcting mechanism
A)tends to push unemployment
Q45: Demand-side inflation differs from supply-side inflation in
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