If higher inflation is expected in the future, then the
A) SAS curve shifts rightward.
B) AD curve shifts rightward.
C) LAS curve shifts rightward.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Higher expected inflation can lead to an increase in aggregate demand as consumers and businesses try to purchase goods and services before prices rise further, causing the AD curve to shift rightward.

If Higher Inflation Is Expected in the Future, Then the