Inflationary Pressures That Result from a Rightward Shift in the AD

question 74

Multiple Choice

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

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

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