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Refer to the Above Diagram

question 8

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  Refer to the above diagram.The initial aggregate demand curve is AD<sub>1</sub> and the initial aggregate supply curve is AS<sub>1</sub>.Cost-push inflation in the short run is best represented as a: A) leftward shift of the aggregate supply curve from AS<sub>1</sub> to AS<sub>2</sub>. B) rightward shift of the aggregate demand curve from AD<sub>1</sub> to AD<sub>2</sub>. C) move from d to b to a. D) move from d directly to a. Refer to the above diagram.The initial aggregate demand curve is AD1 and the initial aggregate supply curve is AS1.Cost-push inflation in the short run is best represented as a:


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