Consider the AD/AS model below with a constant rate of inflation.No exogenous AD or AS shocks are occurring. 
FIGURE 29-1
-Refer to Figure 29-1.What explains the movement of the AD curve from 
to 
to 
and so on?
Definitions:
Illusory
Refers to something that is misleading or deceptive, creating a false perception or illusion.
Illusory
Describes something that appears to be real or possible, but is actually not feasible or based on illusion.
Promisee
The person to whom a promise is made in a contract, who stands to benefit from the fulfillment of the promise.
Bind
To legally obligate oneself or another party to a contract or agreement, making it enforceable by law.
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