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Is stability in general level of prices through time

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Is stability in the general level of prices through time important? Why or why not? Should price stability be the goal of monetary policy? Explain your responses .

Compare and contrast the impact of an unexpected shift to a more expansionary monetary policy under rational and adaptive expectations. Are the implications of the two theories different in the short run? Are the long-run implications different? Explain.

Reference no: EM13453362

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