Changes in the expected rate of inflation will:
A)not shift but create a movement along the SRAS curve.
B)shift the SRAS curve downward or upward.
C)cause the SRAS curve to become vertical.
D)cause the SRAS curve to become upward-sloping.

Question

Quizplus · Accepted Answer

Changes in the expected rate of inflation will shift the SRAS curve upward if expected inflation goes up, and downward if expected inflation goes down.

Changes in the Expected Rate of Inflation Will