Question

Inflation Cycles (Study Plan 12.2) 2. U.S. Inflation Rises at Faster Pace With the consumer price index rising at a faster pace, President-elect Donald Trump wants to slash taxes and boost infrastructure spending, which could cause inflation to rise further. Source: Washingon Post, January 19, 2017 Explain what type of inflation the news clip is describing and provide a graphical analysis of it. Use the following figure to work Problems 3 to 5. The economy starts out on the curves labeled ADo and SASo. LAS SAS2 SAS 230 190 150 110 SAS 9 70 AD2 AD AD 16 18 20 22 Real GDP (trillions of 2009 dollars)

Answer 1