Suppose the short-run AS curve is given by:

(t) = (t-1) + (t)

If there are no shocks to inflation:

Suppose the short-run AS curve is given by: T (t) = (t-1) + =(t) If there are no shocks to inflation: O The AS curve will be vertical and the inflation rate will be constant over time. O The AS curve will be horizontal and the inflation rate will be determined by the position of the AD curve. O The AS curve will be horizontal and the inflation rate will be constant over time. O The AS curve will be vertical and the inflation rate will be determined by the position of the AD curve. O The AS curve will have a negative slope and the inflation rate will be determined by the intersection of the AD and AS curves