Use the Following to Answer Questions: Figure: Two SRAS Curves

Multiple Choice

Use the following to answer questions: Figure: Two SRAS Curves
-(Figure: Two SRAS Curves) The figure shows the AD-AS model with two SRAS curves. Which of the following is TRUE of Point A?

A) The actual inflation rate is 5%, and the expected inflation rate is 3%.
B) The actual inflation rate is 3%, and the expected inflation rate is 5%.
C) The actual inflation rate and the expected inflation rate are both 3%.
D) The actual inflation rate and the expected inflation rate are both 5%.