If an economy at potential GDP experiences a demand shock that shifts the aggregate demand curve rightward, there will be
A) an eventual leftward shift in the short-run aggregate supply curve.
B) upward pressure on money wage rates.
C) unemployment below the natural rate.
D) All of the above answers are correct.
Correct Answer:
Verified
Q25: A demand-pull inflation consists of _shifts in
Q26: In a demand-pull inflation brought about by
Q27: For an economy at full employment, an
Q28: Demand-pull inflation results from continually increasing the
Q29: Suppose that a shock causes the aggregate
Q31: A demand-pull inflation initially is characterized by
A)
Q32: In a persisting demand-pull inflation
A) short-run aggregate
Q33: If the economy is at potential GDP
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