"Demand inflation" refers to
A) the inflation that results from a decrease in net exports.
B) any inflation that is originally caused by a rightward shift of the AD curve but is maintained at a constant level by monetary validation.
C) any inflation that is originally caused by a rightward shift of the AD curve but is accelerating due to monetary validation.
D) only the inflation that results from an expansionary monetary policy.
E) the inflation that results from any inflationary gap caused by a rightward shift of the AD curve.
Correct Answer:
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Q59: If the central bank responds to repeated
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