With demand-pull inflation in the long-run AD-AS model, there is:
A)a decrease in aggregate demand that eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.
B)an increase in aggregate demand that eventually increases nominal wages and causes an increase in the short-run aggregate supply curve.
C)an increase in aggregate demand that eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.
D) an increase in aggregate demand that .eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.

Question

With demand-pull inflation in the long-run AD-AS model, there is:
A)a decrease in aggregate demand that eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.
B)an increase in aggregate demand that eventually increases nominal wages and causes an increase in the short-run aggregate supply curve.
C)an increase in aggregate demand that eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.
D)  an increase in aggregate demand that .eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.

Quizplus · Accepted Answer

The Answer of With demand-pull inflation in the long-run AD-AS model, there is:
A)a decrease in aggregate demand that eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.
B)an increase in aggregate demand that eventually increases nominal wages and causes an increase in the short-run aggregate supply curve.
C)an increase in aggregate demand that eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.
D)  an increase in aggregate demand that .eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.

With Demand-Pull Inflation in the Long-Run AD-AS Model, There Is