Price level in Australia

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Suppose that the price level in Australia is expected torise by 7% in 2017.a) Why do some economists claim that we should not worrytoo much about inflation at this level? b) Other economists think that there are significant costsassociated with inflation above 2-3%. What are they? c) What are the other costs be to consider if the inflation rateunexpectedly turns out to be higher than 7%?

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