Which of the following situations would lead to actual inflation of 3%? A. future inflation is 1%; output-gap inflation is 0%; supply-shock inflation is 2% B. future inflation is 3%; output-gap inflation is 3%; supply-shock inflation is 3% c. future inflation is 1.5%; output-gap inflation is 1.5%; supply-shock inflation is 3% D. future inflation is 0%; output-gap inflation is 3%; supply-shock inflation is - 3% E. future inflation is 3%; output-gap inflation is 0%; supply-shock inflation is - 3% O O
Which of the following situations would lead to actual inflation of 3%? A. future inflation is 1%; output-gap inflation is 0%; supply-shock inflation is 2% B. future inflation is 3%; output-gap inflation is 3%; supply-shock inflation is 3% c. future inflation is 1.5%; output-gap inflation is 1.5%; supply-shock inflation is 3% D. future inflation is 0%; output-gap inflation is 3%; supply-shock inflation is - 3% E. future inflation is 3%; output-gap inflation is 0%; supply-shock inflation is - 3% O O
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 11P
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![Which of the following situations would lead to actual inflation of 3%?
A. future inflation is 1%; output-gap inflation is 0%; supply-shock inflation is 2%
B. future inflation is 3%; output-gap inflation is 3%; supply-shock inflation is 3%
C. future inflation is 1.5%; output-gap inflation is 1.5%; supply-shock inflation is 3%
D. future inflation is 0%; output-gap inflation is 3%; supply-shock inflation is - 3%
E. future inflation is 3%; output-gap inflation is 0%; supply-shock inflation is - 3%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe55ace70-bad1-4608-aef1-9d5e401cf1e7%2Fb8bbd4fc-35b8-4da7-99f3-8c606e11b818%2Frfpap8l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following situations would lead to actual inflation of 3%?
A. future inflation is 1%; output-gap inflation is 0%; supply-shock inflation is 2%
B. future inflation is 3%; output-gap inflation is 3%; supply-shock inflation is 3%
C. future inflation is 1.5%; output-gap inflation is 1.5%; supply-shock inflation is 3%
D. future inflation is 0%; output-gap inflation is 3%; supply-shock inflation is - 3%
E. future inflation is 3%; output-gap inflation is 0%; supply-shock inflation is - 3%
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