If the central bank bases its policy decisions on the, Finance Basics

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If the central bank bases its policy decisions on the

Suppose there is an unexpected slowdown in the rate of productivity growth in the economy so that forecasters consistently overestimate the growth rate of GDP.

If the central bank bases its policy decisions on the consensus forecast, what would be the likely consequences for inflation assuming it maintains its existing inflation target?

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Finance Basics: If the central bank bases its policy decisions on the

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