With Demand-Pull Inflation in the Extended AD-AS Model, There Is

question 14

Multiple Choice

With demand-pull inflation in the extended AD-AS model, there is

• A) a decrease in aggregate demand and a decrease in unemployment that eventually increases nominal wages.
• B) an increase in aggregate demand and a decrease in unemployment that eventually decreases nominal wages.
• C) an increase in aggregate demand and an increase in unemployment that eventually decreases nominal wages.
• D) an increase in aggregate demand and a decrease in unemployment that eventually increases nominal wages.