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4 Cards in this Set
- Front
- Back
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Fiscal policy and Monetary tend to have long x and short y |
F: Short O, Long I M: Long O, Short I |
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Define the gradualism approach |
attempts to decrease in the inflation rate using a series of small reductions in the money growth rate over time. |
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Define the cold turkey approach |
Cuts inflation quickly, sharp reduction in money growth |
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Positive theory of policy making |
In the short run policy makers have to decide how to accomodate a inflationary shock knowing any policy impacts unemployment In the long run policy makers decide whether to aim for 0, low or positive inflation |
