Question: Need help with correct option Use the figure below to answer the j X Price level (GDP deflator, 2007 - 100) LAS 130 120 SAS

Need help with correct option

Use the figure below to answer the j X Price level (GDP deflator, 2007 - 100) LAS 130 120 SAS B 110 - SASO 100 90 AD 0 350 400 450 500 550 600 Real GDP (billions of 2007 dollars) Figure 12.2.2 Refer to Figure 12.2.2. The economy is in long-run equilibrium. If the short-run aggregate supply curve shifts leftward from SAS o to SAS 1, ceteris paribus, then the actual inflation rate Answers: is less than the expected inflation rate. depends on what happens to wage settlements. cannot be determined without more information. is greater than the expected inflation rate. is the same as the expected inflation rate

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