Solved: Other economists think that there are significant costs, Macroeconomics

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Other economists think that there are significant costs

Question: Suppose that the price level in Australia is expected to rise by 7% in 2017.

a. Why do some economists claim that we should not worry too much about inflation at this level?

b. Other economists think that there are significant costs associated with inflation above 2-3%. What are they?

c. What are the other costs be to consider if the inflation rate unexpectedly turns out to be higher than 7%?

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Macroeconomics: Other economists think that there are significant costs

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Macroeconomics: Other economists think that there are significant costs

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