Inflationary Pressures That Result from a Rightward Shift in the AD

question 44

Multiple Choice

Inflationary pressures that result from a rightward shift in the AD curve

• A)cause Y to fall below Y^*.
• B)will worsen any existing unemployment problem.
• C)will initiate a wage-price spiral.
• D)will eventually subside unless accompanied by continual increases in the money supply.
• E)will permanently increase output.

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