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Chapter 23, Problem 2WE

(a)To determine:

To determine

The change in the rate of inflation over the data available for the four most recent quarters and the four quarters before them.

(b)To determine:

To determine

The changes in the net wages above productivity, the oil price and inflation expectations over the data available for the four most recent quarters and the four quarters before them.

(c)To determine:

To determine

If the results are consistent with the expectations and to explain if the answer in part (b) helps in explaining the answer in part (a).

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