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Refer to the Above Diagram

Question 71

Multiple Choice

Refer to the above diagram.The initial aggregate demand curve is AD<sub>1</sub> and the initial aggregate supply curve is AS<sub>1</sub>.Demand-pull inflation in the short run is best shown as: A) a shift of the aggregate demand curve from AD<sub>1</sub> to AD<sub>2</sub>. B) a move from d to b to a. C) a move directly from d to a. D) a shift of the aggregate supply curve from AS<sub>1</sub> to AS<sub>2</sub>. Refer to the above diagram.The initial aggregate demand curve is AD1 and the initial aggregate supply curve is AS1.Demand-pull inflation in the short run is best shown as:


A) a shift of the aggregate demand curve from AD1 to AD2.
B) a move from d to b to a.
C) a move directly from d to a.
D) a shift of the aggregate supply curve from AS1 to AS2.

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