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Use the Figure Below to Answer the Following Questions

Question 102

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Use the figure below to answer the following questions.
Use the figure below to answer the following questions.    Figure 12.2.2 -Refer to Figure 12.2.2.The economy is in long- run equilibrium.If the short- run aggregate supply curve shifts leftward from SAS<sub>0 </sub>to SAS<sub>1</sub>, ceteris paribus, then people expect A) a real GDP decrease of $50 billion. B) a 10 percent inflation. C) the price level to rise to 110. D) the real wage rate to fall by 10 percent. E) a 15 percent inflation. Figure 12.2.2
-Refer to Figure 12.2.2.The economy is in long- run equilibrium.If the short- run aggregate supply curve shifts leftward from SAS0 to SAS1, ceteris paribus, then people expect


A) a real GDP decrease of $50 billion.
B) a 10 percent inflation.
C) the price level to rise to 110.
D) the real wage rate to fall by 10 percent.
E) a 15 percent inflation.

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