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

question 48

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

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