If the Short-Run Aggregate Supply Curve Is π =

question 9

Multiple Choice

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

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