In the Long Run, Demand-Pull Inflation

question 185

Multiple Choice

In the long run, demand-pull inflation

• A) starts out with a shift in the AS curve but no shift of the AD curve.
• B) starts out with a rightward shift in the AD curve, followed by a resulting leftward shift of the short-run AS curve.
• C) starts out with a leftward shift in the AD curve, followed by a resulting rightward shift of the short-run AS curve.
• D) involves a shift of the AD curve only, with no shift of the AS curve.