Use the following to answer questions : Exhibit: AD-AS Shifts -(Exhibit: AD-AS Shifts) Starting from long-run equilibrium at A with output equal to $\bar { Y }$ and the price level equal to P₁, a demand-pull inflation would be represented by a shift from: A) AD₁ to AD₂ B) AD₁ to AD₃ C) AS₁ to AS₂ D) AS₁ to AS₃

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when aggregate demand (AD) increases, shifting the AD curve to the right, from AD₁ to AD₂.

Use the Following to Answer Questions : Exhibit: AD-AS Shifts Yˉ\bar { Y }Yˉ

Use the Following to Answer Questions :
Exhibit: AD-AS Shifts $\bar { Y }$