An increase in expected inflation shifts _____ to the
A) AD, right.
B) AD, left.
C) AS, right.
D) AS, left.

Name: An increase in expected inflation shifts _____ to the A) AD, right. B) AD, left. C) AS, right. D) AS, left.
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Question

Quizplus · Accepted Answer

An increase in expected inflation typically shifts the Aggregate Supply (AS) curve to the left because higher expected inflation raises production costs, leading firms to reduce supply at any given price level.

An Increase in Expected Inflation Shifts _____ to the