Use the figure below to answer the following questions.

Figure 28.1.2
-Refer to Figure 28.1.2.The vertical distance between SAS? and SAS? represents the

Question

Use the figure below to answer the following questions.
  
Figure 28.1.2
-Refer to Figure 28.1.2.The vertical distance between SAS? and SAS? represents the

Quizplus · Accepted Answer

The vertical distance between SAS? and SAS? represents the expected inflation rate. This is because SAS? represents the supply of goods and services in the economy at full employment, and SAS? represents the current level of supply in the short run. The vertical distance between these two curves represents the difference in price levels, which is a measure of inflation. Therefore, the expected inflation rate can be inferred from this graph.

Use the Figure Below to Answer the Following Questions