-An economy is in long-run equilibrium and the price level is 100 in the figure above. Aggregate demand increases and the aggregate demand curve shifts to AD?. If the increase in aggregate demand is expected, then the inflation rate is ________.
A) 0 percent a year
B) 10 percent a year
C) 20 percent a year
D) More than 20 percent a year

Question

-An economy is in long-run equilibrium and the price level is 100 in the figure above. Aggregate demand increases and the aggregate demand curve shifts to AD?. If the increase in aggregate demand is expected, then the inflation rate is ________.
A) 0 percent a year 
B) 10 percent a year 
C) 20 percent a year 
D) More than 20 percent a year

Quizplus · Accepted Answer

The Answer of 
-An economy is in long-run equilibrium and the price level is 100 in the figure above. Aggregate demand increases and the aggregate demand curve shifts to AD?. If the increase in aggregate demand is expected, then the inflation rate is ________.
A) 0 percent a year 
B) 10 percent a year 
C) 20 percent a year 
D) More than 20 percent a year

-An Economy Is in Long-Run Equilibrium and the Price Level