Figure 13.1
-Suppose the economy is at point 1 in Figure 13.1.With output below potential output,it might not be possible to create any expectation of an increase in inflation.How,then,might output be brought back to potential? What would this look like on the graph?

Question

Figure 13.1 
-Suppose the economy is at point 1 in Figure 13.1.With output below potential output,it might not be possible to create any expectation of an increase in inflation.How,then,might output be brought back to potential? What would this look like on the graph?

Quizplus · Accepted Answer

The Answer of Figure 13.1 
-Suppose the economy is at point 1 in Figure 13.1.With output below potential output,it might not be possible to create any expectation of an increase in inflation.How,then,might output be brought back to potential? What would this look like on the graph?

Figure 13.1 -Suppose the Economy Is at Point 1 in Figure 13.1.With