Graphically,an Increase in the Inflation Adjustment (IA)line Represents A(n)_________,and a Shift

question 211

Multiple Choice

Graphically,an increase in the inflation adjustment (IA) line represents a(n) _________,and a shift leftward of the long-run aggregate supply line represents a(n) ________.

• A) upward inflation shock;shock to potential output
• B) downward inflation shock;shock to potential output
• C) excessive aggregate demand;upward inflation shock
• D) shock to potential output;upward inflation shock
• E) shock to potential output;downward inflation shock

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