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The conventional wisdom has been that inflation is bad for the economy. If our inflation is running higher than our trading partners' inflation, according to this argument, our growth slows and jobs are lost.
a. Explain how the mechanism described here works.
b. How could this problem be avoided without curbing our inflation?
PLEASE ANSWER WITH A STRAIGH FORWARD (NOT A COPIED WALL OF TEXT) ANSWER TO THE QUESTION
problem set one1-price-elasticity of
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