-In the above figure, suppose that the economy currently is at point A. If the inflation rate rises and this rise is NOT expected by the public, the economy moves to a point such as point
A) B.
B) C.
C) D.
D) E.

Question

-In the above figure, suppose that the economy currently is at point A. If the inflation rate rises and this rise is NOT expected by the public, the economy moves to a point such as point
A) B. 
B) C. 
C) D. 
D) E.

Quizplus · Accepted Answer

If the inflation rate rises and this rise is NOT expected by the public, the economy moves to a point such as point A, where the price level is higher and output is lower than at point A.

-In the Above Figure, Suppose That the Economy Currently Is