Use the data in the table to answer the question. Real GDP (percent deviationfrom potential GDP) Inflation2.0 2.01.5 2.751.0 3.00.5 3.250 3.5–0.5 3.75–1.0 4.0–1.5 4.25–2.0 4.5Based on this data, what is the average rate of inflation in the long run?

The data in the table describes the aggregate demand curves before and after an increase in government spending, where real GDP is expressed as the percent deviation from potential GDP, and inflation is expressed as a percentage. Real GDP (Before) Real GDP (After) Inflation3.0 4.5 2.01.5 3.0 3.00 1.5 4.0–1.5 0 5.0–3.0 –1.5 6.0In the long run, what is the inflation rate after the increase in government spending?Responses1.5%1.5%4.0%4.0%5.0%5.0%6.0%

The data in the table describes the aggregate demand curve, where real GDP is expressed as the percent deviation from potential GDP, and inflation is expressed as a percentage. Due to a price shock, inflation increases by 1 percent.Real GDP Inflation3.0 2.01.5 3.00.0 4.0–1.5 5.0–3 6.0If the economy is at potential output prior to the price shock, what will inflation be in the long run? Inflation in the long run will be  percent.

Assume that the velocity does not change over time. If real GDP grows at 1% and money supply at 2%, what is the inflation rate? If your answer is 78.90%, write 78.90

Based on the information below, if economic policy does not change, what will inflation be in the long run?Real GDP is expressed as the percent deviation from potential GDP, and inflation is expressed as a percentage.Inflation Adjustment LineReal GDP Inflation2.0 1.01.0 1.00.0 1.0–1.0 1.0–2.0 1.0–3.0 1.0Aggregate Demand CurveReal GDP Inflation2.0 0.01.0 1.00.0 1.5–1.0 3.0–2.0 5.0–3.0 8.0

The table below shows six years of hypothetical CPI values for the United States. Using the information in the table, compute the annual inflation rate. Instructions: Round your answers to two decimal places.  CPI Values and Inflation Year CPI Inflation Rate (percent)2009 214.54 —2010 218.06 %2011 224.94 2012 229.59 2013 232.96 2014 236.74