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.

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?

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

Consider the following table:The economy in the base year 2018 produced:Item Quantity PriceCoffee 20 cups $3 per cupPizza 22 pizzas $10 per pizzaBeer 40 litres $3 per litreIn 2019 the same economy produced:   Item Quantity PriceCoffee 24 cups $2 per cupPizza 25 pizzas $9 per pizzaBeer 42 litres $3.50 per litre                Which of the following is the rate of consumer price inflation and real GDP growth between 2018 and 2019?Group of answer choicesCPI inflation is -6.25% and real GDP growth is 11.1%CPI inflation is 11.1% and real GDP growth is -6.25%CPI inflation is 12% and real GDP growth is -5.5%CPI inflation is -5.5% and real GDP growth is 12%CPI inflation is -5.5% and real GDP growth is 10%

Using the Expenditure Model (GDP = C + G + I + NX), draw a graph that depicts Demand-Pull inflation.