Use the figure below to answer the following questions.
Figure 12.2.2
-Refer to Figure 12.2.2.If the short- run aggregate supply curve does not shift, and remains at SAS₀, then the expected inflation rate is

Question

Use the figure below to answer the following questions.

Figure 12.2.2
-Refer to Figure 12.2.2.If the short- run aggregate supply curve does not shift, and remains at SAS₀, then the expected inflation rate is

Quizplus · Accepted Answer

If the short-run aggregate supply curve does not shift, then the economy will be at the intersection of the aggregate demand curve and the short-run aggregate supply curve, which is point A on the graph. At point A, the inflation rate is zero.

Use the Figure Below to Answer the Following Questions