Since people will always come to expect the actual inflation rate in the long run,the expected inflation rate is found graphically where the:

Question

Quizplus · Accepted Answer

In the long run, the expected inflation rate is where the Short-Run Aggregate Supply (SRAS) curve intersects the Long-Run Aggregate Supply (LRAS) curve, as this point reflects the economy's natural level of output where expectations are fully adjusted.

Since People Will Always Come to Expect the Actual Inflation