Multiple Choice
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 SAS0 to SAS1, ceteris paribus, then the actual inflation rate
A) cannot be determined without more information.
B) depends on what happens to wage settlements.
C) is less than the expected inflation rate.
D) is greater than the expected inflation rate.
E) is the same as the expected inflation rate.
Correct Answer:

Verified
Correct Answer:
Verified
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