If the aggregate demand curve shifts ________ faster than the long-run aggregate supply curve, then ________ occurs.
A) leftward; economic growth
B) leftward; inflation
C) rightward; economic growth
D) rightward; inflation

Question

Quizplus · Accepted Answer

If the aggregate demand curve shifts rightward faster than the long-run aggregate supply curve, it can lead to inflation as demand outpaces supply, causing prices to rise.

If the Aggregate Demand Curve Shifts ________ Faster Than the Long-Run