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1. When looking at inflation, you will find that this is the general increase in the price level. How does inflation affect your daily decisions?

2. What is an example of demand-pull inflation? How does it affect our daily decisions that we have to make?

3. What policy(fiscal or monetary) is more effective at stabilizing an economy that is in a recession? Make sure to explain your reasoning.

4. What type of interest rate is more important to evaluate, your real or nominal interest rates?

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