Based on the graph above, if the economy is at point 2, then (assuming
Based on the graph above, if the economy is at point 2, then (assuming no price shocks and no changes in actual and potential output) the inflation rate next period will be ________ percent.
A) 5
B) 3.5
C) 4.5
D) 4
E) none of the above
ANSWER
A
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