A constant inflation rate can be illustrated by the AD curve shifting upward

Question

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A constant inflation rate can be illustrated when the aggregate demand (AD) curve shifts upward at the same rate as the aggregate supply (AS) curve shifts upward. This simultaneous shift ensures that the price level increases at a steady rate, reflecting constant inflation, while output can remain unchanged or grow depending on the nature of the shifts.

A Constant Inflation Rate Can Be Illustrated by the AD