180 180 D3 D4 140 120 F L-RAS D1 D2 100 Price level (GDP deflator, 1998 = 100) 80 60 40 20 6 B 9 10 Real GDP ($ trillions) After reading my document on the Problems with the Keynesian Long Run Aggregate Supply Curve, answer these questions: In your own words: 1. According to Keynes and his long run aggregate supply curve that you see above, what causes inflation? In other words, why isn't there any inflation according to Keynes when moving from Point A to Point B? 2. What is the problem with what he thinks causes inflation? Explain what you know about what causes inflation