To Illustrate Inflation Inertia in an Aggregate Demand-Aggregate Supply Model

question 33

Multiple Choice

To illustrate inflation inertia in an aggregate demand-aggregate supply model, the short-run aggregate supply curve shifts upward because of increases in ______, and the aggregate demand curve shifts upward because of increases in ______.

• A) the expected price level; the money supply
• B) the money supply; the expected price level
• C) output; the price level
• D) the price level; output

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