Use the Figure Below to Answer the Following Questions

question 3

Multiple Choice

Use the figure below to answer the following questions.
Figure 12.2.2
-Refer to Figure 12.2.2.The economy is in long- run equilibrium.If the short- run aggregate supply curve shifts leftward from SAS₀ to SAS₁, ceteris paribus, then the actual inflation rate

• A)cannot be determined without more information.
• B)depends on what happens to wage settlements.
• C)is less than the expected inflation rate.
• D)is greater than the expected inflation rate.
• E)is the same as the expected inflation rate.

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