If actual inflation differs from expected inflation, what is the slope of the aggregate supply curve?
A) It is horizontal in the short and long run.
B) It is vertical in the short and long run.
C) It is vertical in the short run and upward sloping in the long run.
D) It is upward sloping in the short run and vertical in the long run.
Correct Answer:
Verified
Q158: Figure 17-8 Q159: If policy makers do nothing in response Q160: Policy makers who believe that the costs Q161: If actual inflation differs from expected inflation, Q162: Based on the evidence, most economists believe Q163: If the self-correcting mechanism operates quickly, Q175: If the short-run Phillips curve has a Q177: If workers demand wage compensation in advance Q178: Many economists think that, in the long Q179: If workers underestimate inflation, the aggregate supply
A)direct intervention
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