How many years does it take to get inflation down to zero

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Reference no: EM131141954

Return to the situation of year 1 in the previous problem. By how much would unemployment need to rise to lower inflation in year 2 to 3 percent? Suppose unemployment is kept at this higher level. What happens to inflation in year 3? In year 4? How many years does it take to get inflation down to zero? Make a table like the one in the previous problem to show your results.

Reference no: EM131141954

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