Aggregate Supply Curves (1)

question 39

Multiple Choice

Aggregate Supply Curves (1)
-Based on the graph above,suppose the economy is at point 2,then output falls to 10 and there is a price shock of one percent.The inflation rate next period will be ________ percent.

• A)5
• B)3.5
• C)4.5
• D)4
• E)none of the above