-Refer to Figure 10.3.Inflation increases most rapidly as the economy moves from A)AD₃ to AD₂. B)AD₂ to AD₁. C)AD₁ to AD₀. D)AD₂ to AD₃.

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Quizplus · Accepted Answer

Inflation increases most rapidly when the economy moves from AD₁ to AD₀ because this movement represents a shift to a higher aggregate demand level, typically leading to higher price levels and increased inflation.