According to New Keynesians, an increase in which of the following will tend to cause the inflation rate to increase?

A. anticipated future inflation
B. an unexpected increase in aggregate demand
C. firms' average inflation adjusted per-unit costs of production
D. all of these


Answer: D

Economics

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a. is illegal in the United States and Europe. b. can occur in both perfectly competitive and monopoly markets. c. is illogical because it does not maximize profits. d. can maximize profits if the seller can prevent the resale of goods between customers.

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What will be an ideal response?

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