Discussion

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Imagine that you are in charge of macroeconomic policy. Answer these questions, being sure to explain your answers.

  • What are some of the problems, difficulties, or hardships caused by unemployment?
  • What are some of the problems, difficulties, or hardships caused by inflation?
  • If you had to make a choice today between a policy that would head off increases in inflation or increases in unemployment, which one would you choose?
 
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