Use the figure below to answer the following questions.

Figure 28.1.2
-Refer to Figure 28.1.2.The vertical distance between SAS0 and SAS1 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 SAS0 and SAS1 represents the

Quizplus · Accepted Answer

The vertical distance between SAS0 and SAS1 represents the expected inflation rate. This is because the shift in the SAS curve shows a change in the overall price level, which is represented by the inflation rate. The vertical distance measures the change in the price level, which is expected to increase based on the shift from SAS0 to SAS1.

Use the Figure Below to Answer the Following Questions