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If Actual Inflation Differs from Expected Inflation, What Is the Slope

Question 214

Multiple Choice

If actual inflation differs from expected inflation, what is the slope of the aggregate supply curve?


A) It is horizontal in the short and long run.
B) It is vertical in the short and long run.
C) It is vertical in the short run and upward sloping in the long run.
D) It is upward sloping in the short run and vertical in the long run.

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