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- Assume initial eqm. is at E , where inflation is at its torget. - Explain how a temporany nise in commodity prices can lead to the central bank to stabilise output. [ 5 make] .

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- Assume initial eqm. is at E , where inflation is at its torget. - Explain how a temporany nise in commodity prices can lead to the central bank to stabilise output. [ 5 make]

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