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-An Economy Is at Potential GDP and the Price Level

Question 357

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-An economy is at potential GDP and the price level is 100 in the figure above. If aggregate demand unexpectedly increases so that the aggregate demand curve shifts to AD<sub>1</sub>, the inflation rate is ) A) 20 percent a year B) 10 percent a year C) 0 percent a year D) More than 20 percent a year
-An economy is at potential GDP and the price level is 100 in the figure above. If aggregate demand unexpectedly increases so that the aggregate demand curve shifts to AD1, the inflation rate is
)


A) 20 percent a year
B) 10 percent a year
C) 0 percent a year
D) More than 20 percent a year

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