The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin

تمرين 16

All applied problems are available in MyEconLab at www.myeconlab.com.
During the first half of 2010, Fed officials discussed the possibility of increasing interest rates as a way of fighting potential increases in expected inflation. If the public came to expect higher inflation rates in the future, what would be the effect on the short-run aggregate supply curve? Show your answer, using an aggregate demand and supply graph.