During a Demand-Pull Inflation, If the Fed Tries to Maintain

Multiple Choice

During a demand-pull inflation, if the Fed tries to maintain a level of real GDP above potential GDP,

A) the SAS curve will shift leftward continuously and the AD curve will not shift.
B) the AD curve will shift rightward continuously and SAS curves will shift leftward continuously.
C) the AD curve will shift rightward continuously and the SAS curve will not shift.
D) there will be a one-time shift in the AD and the SAS curves.