If Demand Pull Inflation Occurs When the Economy Is Already

question 49

Multiple Choice

If demand pull inflation occurs when the economy is already at potential GDP, then following the
Initial increase in aggregate demand, the

• A)potential GDP line shifts rightward.
• B)AS curve shifts leftward.
• C)potential GDP line shifts leftward.
• D)AS curve shifts rightward.
• E)None of the above are correct because demand-pull inflation shifts only the aggregate demand curve.

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Definitions:

Increase

A rise or growth in quantity, size, or degree.

Survival Of Elephants

The continuance of elephant populations in the face of various threats like poaching, habitat loss, and climate change.

Lack Of Incentive

A situation where there is no motivation or insufficient motivation to perform an action due to the absence of rewards or perceived benefits.

Elephant Preservation

Efforts and activities dedicated to saving elephants from threats such as poaching and habitat destruction, aiming to ensure their survival and wellbeing.