If the aggregate demand curve shifts faster than the long- run aggregate supply curve, then _ occurs.
A) leftward; economic growth
B) rightward; inflation
C) leftward; inflation
D) rightward; economic growth

Question

Quizplus · Accepted Answer

If aggregate demand shifts faster than long-run aggregate supply, then there is more demand for goods and services than can be supplied in the long run. This leads to higher prices and inflation. Therefore, choice B is the correct answer.

If the Aggregate Demand Curve Shifts Faster Than the Long-