An increase in the inflation rate corresponds to a _________ the aggregate demand (ADI)curve,and an increase in autonomous aggregate demand corresponds to a _________ the aggregate demand (ADI)curve.
A) shift to the left of;movement up
B) shift to the left of;shift to the right of
C) movement up;movement down
D) movement up;shift to the right of
E) movement down;shift to the left of

Question

Quizplus · Accepted Answer

An increase in the inflation rate corresponds to a movement up the aggregate demand (ADI) curve, and an increase in autonomous aggregate demand corresponds to a shift to the right of the aggregate demand (ADI) curve.

An Increase in the Inflation Rate Corresponds to a _________