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Consider the Figure Below

Question 35

Multiple Choice

Consider the figure below . The situation in Trombli is characterized by SRAS 1 and AD 1 when there is an increase in the money supply shifting the short-run aggregate supply curve to SRAS 2 . This will create __________ in the economy.
Consider the figure below . The situation in Trombli is characterized by SRAS <sub>1</sub> and AD <sub>1</sub> when there is an increase in the money supply shifting the short-run aggregate supply curve to SRAS <sub>2</sub> . This will create __________ in the economy.   A) a depression B) recessionary pressure C) stagflationary pressure D) inflationary pressure


A) a depression
B) recessionary pressure
C) stagflationary pressure
D) inflationary pressure

Correct Answer:

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