On the graph above, suppose point G is on the short-run aggregate supply curve ? = 2.5 + 2 × (Y - 22 ) and aggregate demand curve Y = 29.25 - 0.5?
If output at point G is 25, and inflation expectations are adaptive, then the inflation rate next period will be ________. A) 11.5
B) 14.5
C) 8.5
D) 2.5
E) none of the above
A
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During periods of inflation:
a. everyone's real income rises. b. those people who have fixed incomes benefit. c. those people whose nominal income rises faster than the general price level benefit. d. those people who enter long-term wage agreements benefit. e. those people who hold a lot of cash benefit.
At the end of 2009, the national debt stood at 60 percent of GDP, substantially higher than its World War II level
a. True b. False
A. $4 or less. B. $3.90 or less. C. $3.50 or less. D. $3.40 or less
A. $1 or less. B. $.75 or less. C. $1.75 or less. D. $2 or less.
What does it mean for a firm to be a price taker in the labor market?
What will be an ideal response?