To experience an increase in growth along a short-run aggregate supply curve with expected inflation of 5 percent, the actual inflation rate would need to be

Question

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In order for an increase in growth to occur along a short-run aggregate supply curve with expected inflation of 5 percent, the actual inflation rate must exceed the expected inflation rate. Therefore, the actual inflation rate would need to be greater than 5 percent. The only answer choice that is greater than 5 percent is D) 6 percent.

To Experience an Increase in Growth Along a Short-Run Aggregate