Author Question: Refer to Figure 24-4. In the figure above, LRAS1 and SRAS1 denote LRAS and SRAS in year 1, while ... (Read 176 times)

karen · **on:** Jun 29, 2018

Refer to Figure 24-4. In the figure above, LRAS1 and SRAS1 denote LRAS and SRAS in year 1, while LRAS2 and SRAS2 denote LRAS and SRAS in year 2. Given the economy is at point A in year 1, what is the growth rate in potential GDP in year 2?

A) 8 B) 9.1 C) 10 D) 12

Question 2

Inflation redistributes income to a greater extent when the inflation is unanticipated compared to when the inflation is anticipated.

Indicate whether the statement is true or false