If an administration pursues expansionary policy before an


If an administration pursues expansionary policy before an election to bring down unemployment it can a) produce inflation only if the real interest rate is zero to begin with, b lower peoples expectations about inflation through a sense of false complacency, c produce inflation if the targeted rate of unemployment is too low, d produce disinflation if the expansionary policy is unanticipated

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Business Economics: If an administration pursues expansionary policy before an
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