In the Long Run, Demand-Pull Inflation

question 28

Multiple Choice

In the long run, demand-pull inflation:

• A) Starts out with a shift in the AS curve, but no shift of the AD curve
• B) Starts out with a rightward shift in the AD curve, followed by a resulting leftward shift of the short-run AS curve
• C) Starts out with a leftward shift in the AD curve, followed by a resulting rightward shift of the short-run AS curve
• D) Involves a shift of the AD curve only, with no shift of the AS curve

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