Refer to the Graph

question 264

Multiple Choice

Refer to the graph. Ongoing inflation would occur if the Fed

• A) increased the money supply, causing AD to shift faster than technological progress shifts AS.
• B) increased the money supply, causing AD to shift slower than technological progress shifts AS.
• C) increased the money supply, causing AD to shift as fast as technological progress shifts AS.
• D) did not increase the money supply while technological progress is shifting AS.

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