In the dynamic aggregated demand and aggregate supply model,if AD shifts faster than AS
A)inflation occurs.
B)deflation occurs.
C)stagflation occurs.
D)disinflation occurs.

Name: In the dynamic aggregated demand and aggregate supply model,if AD shifts faster than AS A)inflation occurs. B)deflation occurs. C)stagflation occurs. D)disinflation occurs.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

When aggregate demand (AD) shifts faster than aggregate supply (AS), it leads to an increase in the overall price level, resulting in inflation.

In the Dynamic Aggregated Demand and Aggregate Supply Model,if AD