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Figure 13.1 -Suppose the Economy Is at Point 1 in Figure 13.1.With

Question 39

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Figure 13.1 Figure 13.1 -Suppose the economy is at point 1 in Figure 13.1.With output below potential output,it might not be possible to create any expectation of an increase in inflation.How,then,might output be brought back to potential? What would this look like on the graph?
-Suppose the economy is at point 1 in Figure 13.1.With output below potential output,it might not be possible to create any expectation of an increase in inflation.How,then,might output be brought back to potential? What would this look like on the graph?

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The reason output is so low is that the ...

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