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Chapter 8, Problem 4QAP

(a)

To determine

The process of forming the expected inflation when θ=0 .

(b)

To determine

The process of forming the expected inflation when θ=1 .

(c)

To determine

To analyze the way of formation of own expectation.

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Chapter 8 Solutions

Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)

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