Graphically, demand-pull inﬂation is shown as a
A) rightward shift of the AD curve along an upsloping AS curve.
B) leftward shift of the AS curve along a downsloping AD curve.
C) leftward shift of the AS curve along an upsloping AD curve.
D) rightward shift of the AD curve along a downsloping AS curve.

Question

Quizplus · Accepted Answer

Demand-pull inflation is depicted as a rightward shift of the Aggregate Demand (AD) curve along an upward-sloping Aggregate Supply (AS) curve, indicating increased demand in the economy leading to higher prices.

Graphically, Demand-Pull Inﬂation Is Shown as a