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If the Short-Run Aggregate Supply Curve Is π =

Question 9

Multiple Choice

If the short-run aggregate supply curve is π = If the short-run aggregate supply curve is π = + 1.2 (Y - ) + ρ,output equals potential output and there is a price shock of minus two,then the inflation rate is ________. A) 2 B) - 2 C) minus 2 D) minus 2.4 E) none of the above + 1.2 (Y - If the short-run aggregate supply curve is π = + 1.2 (Y - ) + ρ,output equals potential output and there is a price shock of minus two,then the inflation rate is ________. A) 2 B) - 2 C) minus 2 D) minus 2.4 E) none of the above ) + ρ,output equals potential output and there is a price shock of minus two,then the inflation rate is ________.


A) 2
B) If the short-run aggregate supply curve is π = + 1.2 (Y - ) + ρ,output equals potential output and there is a price shock of minus two,then the inflation rate is ________. A) 2 B) - 2 C) minus 2 D) minus 2.4 E) none of the above - 2
C) minus 2
D) minus 2.4
E) none of the above

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