AD - AS Shocks Inflation Rate (percent) LRAS AS, AS, H G AD, AD, Aggregate Output, Y($ trillions) On the graph above, suppose point G is on the short - run aggregate supply curve = 2.5 + 2 * (Y - 22)...

Need explanation how we got 11.5

AD - AS Shocks<br>Inflation Rate<br>(percent)<br>LRAS<br>AS,<br>AS,<br>H<br>G<br>AD,<br>AD,<br>Aggregate Output,<br>Y($ trillions)<br>On the graph above, suppose point G is on the short - run aggregate supply curve = 2.5 + 2 * (Y - 22) and<br>aggregate demand curve Y = 29.25 - 0.5t. If output at point G is 25, and inflation expectations are adaptive, then the<br>inflation rate next period will be<br>O A. 8.5<br>B. 11.5<br>O C. 2.5<br>O D. 14.5<br>O E. none of the above<br>

Extracted text: AD - AS Shocks Inflation Rate (percent) LRAS AS, AS, H G AD, AD, Aggregate Output, Y($ trillions) On the graph above, suppose point G is on the short - run aggregate supply curve = 2.5 + 2 * (Y - 22) and aggregate demand curve Y = 29.25 - 0.5t. If output at point G is 25, and inflation expectations are adaptive, then the inflation rate next period will be O A. 8.5 B. 11.5 O C. 2.5 O D. 14.5 O E. none of the above

Jun 07, 2022

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AD - AS Shocks Inflation Rate (percent) LRAS AS, AS, H G AD, AD, Aggregate Output, Y($ trillions) On the graph above, suppose point G is on the short - run aggregate supply curve = 2.5 + 2 * (Y - 22)...

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