A demand-pull inflation consists of _{--------------------}shifts in the AD curve and_{--------------------} shifts in the AS curve. A)leftward; leftward B)rightward; rightward C)rightward; leftward D)leftward; rightward E)right; no

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when there is an increase in aggregate demand (AD) and no change in aggregate supply (AS). This is represented by a rightward shift in the AD curve and no shift in the AS curve.

A Demand-Pull Inflation Consists of --------------------shifts in the AD Curve

A Demand-Pull Inflation Consists of _{--------------------}shifts in the AD Curve