Answer to Question #269963 in Macroeconomics for Anna

Question

Across the entire economy it is expected that inflation will rise. The result will be the _____ curve will shift _____.

 

A. AD; rightward

B. SRAS; upward

C. SRAS; downward

D. AD; until it becomes vertical

Answer 1

Across the entire economy it is expected that inflation will rise. The result will be the SRAS curve will shift upward.