The short-run aggregate supply curve shows that a change in ...

[lunatika]

The short-run aggregate supply curve shows that a change in inflation will cause (a) change(s) in ________.
 
  A) output
  B) potential output
  C) expected inflation
  D) price shocks
  E) all of the above

Question 2

Keynes thought that expectations are
 
  a. a function of current income.
  b. predictable and stable.
  c. an important determinant of consumption.
  d. unpredictable and influences planned investment.

[srodz]

Answer to Question 1

C

Answer to Question 2

C