If the short-run aggregate supply curve is π = + 1.2 (Y - )+ ρ,output equals potential output and there is a price shock of minus two,then the inflation rate is ________.
A)2
B) - 2
C)minus 2
D)minus 2.4
E)none of the above

Question

If the short-run aggregate supply curve is π =  + 1.2 (Y -  )+ ρ,output equals potential output and there is a price shock of minus two,then the inflation rate is ________.
A)2 
B) - 2 
C)minus 2 
D)minus 2.4 
E)none of the above

Quizplus · Accepted Answer

The Answer of If the short-run aggregate supply curve is π =  + 1.2 (Y -  )+ ρ,output equals potential output and there is a price shock of minus two,then the inflation rate is ________.
A)2 
B) - 2 
C)minus 2 
D)minus 2.4 
E)none of the above

If the Short-Run Aggregate Supply Curve Is π =