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Refer to the Above Graph

Question 17

Multiple Choice

Refer to the above graph.Given that the economy is at an initial equilibrium where the AD<sub>1</sub> and AS<sub>1</sub> curves intersect, demand-pull inflation in the short run can best be represented by a shift from: A) AS<sub>1</sub> to AS<sub>3</sub>. B) AD<sub>1</sub> to AD<sub>2</sub>. C) AS<sub>1</sub> to AS<sub>2</sub>. D) AD<sub>2</sub> to AD<sub>1</sub>. Refer to the above graph.Given that the economy is at an initial equilibrium where the AD1 and AS1 curves intersect, demand-pull inflation in the short run can best be represented by a shift from:


A) AS1 to AS3.
B) AD1 to AD2.
C) AS1 to AS2.
D) AD2 to AD1.

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