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What is the signal extraction problem? How do producers respond to unanticipated inflation? What are the factors that affect the magnitude of this response? In the misperceptions model, what are the effects of the anticipated money policy? Discuss the implications for monetary policy?

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What is the signal extraction problem? How do producers respond to unanticipated inflation?
What are the factors that affect the magnitude of this response? In the misperceptions model, what are the effects of the anticipated money policy?
Discuss the implications for monetary policy?