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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Definitions:

Analogous Problem

A problem that shares similar features with another problem, allowing solutions or insights from one to inform the other.

Problem Solving

The process of working through details of an issue to reach a solution, often involving analytical or creative techniques.

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The cognitive process of reorganizing one’s understanding of a given subject to make the learning process more efficient.

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A framework for thinking about a problem based on previous experiences and perceptions, which can both aid and limit problem-solving.