Use the figure below to answer the following questions.

Figure 28.2.2
-Refer to Figure 28.2.2. The economy is in long-run equilibrium. If the short-run aggregate supply curve shifts leftward from SAS₀ to SAS₁, ceteris paribus, then people expect
A)a 10 percent inflation.
B)the price level to rise to 110.
C)the real wage rate to fall by 10 percent.
D)a real GDP decrease of $50 billion.
E)a 15 percent inflation.

Question

Use the figure below to answer the following questions.
  
Figure 28.2.2
-Refer to Figure 28.2.2. The economy is in long-run equilibrium. If the short-run aggregate supply curve shifts leftward from SAS₀ to SAS₁, ceteris paribus, then people expect
A)a 10 percent inflation. 
B)the price level to rise to 110. 
C)the real wage rate to fall by 10 percent. 
D)a real GDP decrease of $50 billion. 
E)a 15 percent inflation.

Quizplus · Accepted Answer

The Answer of Use the figure below to answer the following questions.
  
Figure 28.2.2
-Refer to Figure 28.2.2. The economy is in long-run equilibrium. If the short-run aggregate supply curve shifts leftward from SAS₀ to SAS₁, ceteris paribus, then people expect
A)a 10 percent inflation. 
B)the price level to rise to 110. 
C)the real wage rate to fall by 10 percent. 
D)a real GDP decrease of $50 billion. 
E)a 15 percent inflation.

Use the Figure Below to Answer the Following Questions