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3. According to macroeconomists, what would happen if a higher inflation rate becomes embedded in the economy (i.e., people b

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if the people start believing that they live in a higher inflation world then the nominal price of the goods in the long run will increase and the real value of all the variables will remain the same, this will not affect the actual output of all the goods similarly if the people start believing that they are living in a low inflation world the the price of the goods and services will fall and the new output in the market will be at a lower price but here as well the actual output and real value of the variables will remains the same.

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