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Since People Will Always Come to Expect the Actual Inflation

Question 151

Multiple Choice

Since people will always come to expect the actual inflation rate in the long run,the expected inflation rate is found graphically where the:


A) AD curve intersects the SRAS curve.
B) AD curve intersects the LRAS curve.
C) SRAS curve intersects the LRAS curve.
D) LRAS intersects the horizontal axis.

Correct Answer:

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