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Inflationary Pressures That Result from a Rightward Shift in the AD

Question 8

Multiple Choice

Inflationary pressures that result from a rightward shift in the AD curve


A) cause Y to fall below Y*.
B) will worsen any existing unemployment problem.
C) will initiate a wage-price spiral.
D) will eventually subside unless accompanied by continual increases in the money supply.
E) will permanently increase output.

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