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The annual growth of real output exceeded 9% in the second quarter of 1983, and the most recent statistics suggest very strong growth in the current quarter as well. Though the inflation rate has bottomed out, it does not yet show any major reacceleration. With unemployment declining in line...
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Since the election of President Reagan in November 1980, the inflation rate has declined from the 10-11% area to about 8% in response to monetary restraint and slack in the economy. Despite many forecasts that inflation will continue to decline to the 6-7% area over the next 12 to 18 months,...
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