If Demand Pull Inflation Occurs When the Economy Is Already

question 191

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) SAS curve shifts rightward.
• B) LAS curve shifts rightward.
• C) SAS curve shifts leftward.
• D) LAS curve shifts leftward.

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Definitions:

Transitional Expression

Words or phrases used to link sentences and paragraphs together, helping to make writing smoother and more cohesive.

High Winds

Strong and often damaging air currents that move at high speeds.

Utility Poles

Tall poles used to support overhead power lines and various other public utilities, such as telecommunications cables.

Flooding Damage

The destruction and harm caused by an excess of water overflowing onto land that is normally dry.