(Answered) Suppose that an increase in peoples expected inflation rate

Finance

Suppose that an increase in people's expected inflation rate in the coming year would deduce their demand for money. How would a shock to the expected inflation affect output and the price level in the short run and in general equilibrium?

What is the difference between homogeneous-agent models and heterogeneous-agent models? Which do you think is more realistic? Which do you think are more difficult to work with because it is technically more complicated?

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