An increase in AD will trigger more inflation under which of the following conditions?

Name: An increase in AD will trigger more inflation under which of the following conditions?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When AS (Aggregate Supply) is relatively steep, it means that it is not able to respond quickly to an increase in AD (Aggregate Demand), which leads to higher inflation. Therefore, an increase in AD will trigger more inflation under the condition where AS is relatively steep.

An Increase in AD Will Trigger More Inflation Under Which