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Unformatted text preview: annual average of 3.5% while the inflation rate stayed at a minimal amount. Our central bank, along with the Clinton Administrations and many other major economists seem to believe that any kind of growth in the economy of over 2.5% will trigger inflation. Thats why so many economists assumed that with the ever-lowering unemployment rates of recent, there would be huge increases in wages and it would sharply inflate prices. This same assumption was made because of the Federal Reserves actions in the past. In 1994 the Federal Reserve tried slowing down the economy in the fight against inflation by raising interest rates....
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This note was uploaded on 03/10/2011 for the course ECON 101 taught by Professor Duc during the Spring '05 term at Linfield.
- Spring '05