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It Seems Likely That If the Inflation Rate Rises Above

Question 31

Multiple Choice

It seems likely that if the inflation rate rises above some threshold level,it may impair the productive capacity of the economy,and the damage is likely to get worse at higher rates of inflation.If so,the LRAS line would


A) bend upward to the right above the threshold inflation rate.
B) bend upward to the left above the threshold inflation rate.
C) not bend in either direction above the threshold inflation rate.
D) bend downward to the left above the threshold inflation rate.
E) bend downward to the right above the threshold inflation ratE.

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