Inflationary Pressures That Result from a Rightward Shift in the AD

Multiple Choice

Inflationary pressures that result from a rightward shift in the AD curve

A) cause Y to fall below Y^*.
B) will worsen any existing unemployment problem.
C) will initiate a wage-price spiral.
D) will eventually subside unless accompanied by continual increases in the money supply.
E) will permanently increase output.