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Refer to the Graph Above

question 55

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  Refer to the graph above. Suppose that the economy is at an initial equilibrium where the AD<sub>1</sub> and AS<sub>1</sub> curves intersect. Demand-pull inflation in the long run can best be illustrated as a shift of: A)  AS<sub>1</sub> to AS<sub>2</sub>, and back again to AS<sub>1</sub> B)  AD<sub>1</sub> to AD<sub>2</sub>, and back again to AD<sub>1</sub> C)  AS<sub>1</sub> to AS<sub>2</sub>, consequently making AD<sub>1</sub> shift to AD<sub>2</sub> D)  AD<sub>1</sub> to AD<sub>2</sub>, consequently making AS<sub>1</sub> shift to AS<sub>2</sub> Refer to the graph above. Suppose that the economy is at an initial equilibrium where the AD1 and AS1 curves intersect. Demand-pull inflation in the long run can best be illustrated as a shift of:


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