Refer to the diagram given below. Assume that the nominal wages of workers are initially set on the basis of the price level P₂ and that the economy is initially operating at its full-employment level of output Q_f.In the long run, demand-pull inflation could best be shown as: A)a movement from point b to point c on AS₂. B)a movement from point a to point b. C)a shift of the aggregate supply curve from AS₂ to AS₁. D)a movement from point b to point d.

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The Answer of Refer to the diagram given below. Assume that the nominal wages of workers are initially set on the basis of the price level P₂ and that the economy is initially operating at its full-employment level of output Q_f.In the long run, demand-pull inflation could best be shown as: A)a movement from point b to point c on AS₂. B)a movement from point a to point b. C)a shift of the aggregate supply curve from AS₂ to AS₁. D)a movement from point b to point d.

Refer to the Diagram Given Below