A Constant Inflation in the AD/AS Macro Model Is Only

question 86

Multiple Choice

A constant inflation in the AD/AS macro model is only possible when

• A)AS shifts upward at a uniform rate and AD shifts downwards at a uniform rate.
• B)AS shifts downward at a uniform rate and AD shifts upwards at a uniform rate.
• C)AD shifts upwards at a uniform rate and AS shifts upwards at the same uniform rate.
• D)AD shifts upwards at a uniform rate and AS shifts upwards at a higher uniform rate.
• E)None of the above - constant inflation is not possible.