Macroeconomics 11th Edition by Michael Parkin

تمرين 9

Use the following figure to answer Problem. In each question, the economy starts out on the curves labeled AD 0 and SAS 0.

Some events occur and the economy is expected to experience inflation.
a. List the events that might cause an expected inflation.
b. Describe the initial effects of an expected inflation.
c. Describe what happens as an expected inflation proceeds.