What will happen to the inflation rate

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Suppose SRAS is horizontal as believed by Keynesian economists and is given by P = 110 and that the aggregate demand curve is P =200-2Q

Where, P: price level Q: real GDP ( in billion $)

Now suppose that the SRAS shifts upward from P=110 to P = 115. What will happen to the inflation rate? What will happen to the real output?

Reference no: EM13817904

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