To reduce inflation the fed must use selector 1

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Reference no: EM13895016

To reduce inflation, the Fed must use selector 1

expansionary
contractionary

policy. In the short run, the economy moves from point A to point selector 2

. In the long run, the economy will move to point selector 3

. This illustrates that the costs of reducing inflation are selector 4

permanent
temporary

and the benefits of reducing inflation are selector 5

permanent
temporary

1290_IMG_1706 (2).JPG

Reference no: EM13895016

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