Refer to Figure 24-4. In the figure above, LRAS1 and SRAS1 denote ...

[karen]

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

[xiaomengxian]

Answer to Question 1

C

Answer to Question 2

TRUE

[karen]

Thanks for the timely response, appreciate it

[shailee]

Wow, this really help