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.

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%

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

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?

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

Suppose that a country's money supply grows at 15 percent per year and the velocity of money circulation remains constant. The country's real GDP grows at 4% and the nominal interest rate is 10%. Due to some external shock, a leftward shift in the short-run aggregate supply curve (SRAS) results in a 2 percent decline in the level of output. What were the growth rate of nominal GDP, the rate of inflation, and the real interest rate before the external shock? What is the new real GDP growth rate? What is likely to happen to nominal GDP and the inflation rate?A.19%, 10.58%, 0.58%; 2%; Nominal GDP decreases, inflation rate increases.B.19%, 10.58%, 0.58%; 2%; Nominal GDP increases, inflation rate increases.C.15%, 10.58%, -0.58%; 2%; Nominal GDP decreases, inflation rate increases.D.15%, 10.58%, -0.58%; 6%; Nominal GDP decreases, inflation rate decreases.SUBMIT ANSWER