Hand written solutions are strictly prohibited A positive supply shock creates a 5% GDP gap. What is the new inflation rate?Inflation Rate4.25%3.75%3.25%2.75%2.25%1.75%1.25%0.75%0.25%6070 80 9000LRASCSRASAD100 110 120 130 140 150Output Index

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Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 7SQP

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A positive supply shock creates a 5% GDP gap. What is the new inflation rate? Inflation Rate 4.25% 3.75% 3.25% 2.75% 2.25% 1.75% 1.25% 0.75% 0.25% 60 70 80 90 00 LRAS C SRAS AD 100 110 120 130 140 150 Output Index