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10. The economy of Brittania has been suffering from high inflation with anunemployment rate equal to its natural rate. Policy makers would like todisinflate the economy with the lowest economic cost possible. Assume thatthe state of the economy is not the result of a negative supply shock. Howcan they try to minimize the unemployment cost of disinflation? Is itpossible for there to be no cost of disinflation?
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