During a Demand-Pull Inflation, If the Fed Tries to Maintain

question 75

Multiple Choice

During a demand-pull inflation, if the Fed tries to maintain a level of real GDP above potential GDP, the AD curve will _{--------------------} and the AS curve will _{--------------------}.

• A)shift rightward continuously; shift rightward continuously
• B)not shift; shift rightward continuously
• C)shift rightward continuously; not shift
• D)shift rightward continuously; shift leftward continuously
• E)shift rightward once; shift rightward continuously

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