Use the figure below to answer the following questions.

Figure 28.2.2
-Refer to Figure 28.2.2. The vertical distance between SAS₀ and SAS₁ represents the
A)actual inflation rate.
B)expected increase in real GDP.
C)actual decrease in real GDP.
D)expected inflation rate.
E)expected decrease in the real wage rate.

Question

Use the figure below to answer the following questions.
  
Figure 28.2.2
-Refer to Figure 28.2.2. The vertical distance between SAS₀ and SAS₁ represents the
A)actual inflation rate. 
B)expected increase in real GDP. 
C)actual decrease in real GDP. 
D)expected inflation rate. 
E)expected decrease in the real wage rate.

Quizplus · Accepted Answer

The vertical distance between SAS₀ and SAS₁ represents the expected inflation rate.

Use the Figure Below to Answer the Following Questions