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  3. Study Set
    Macroeconomics Principles
  4. Exam
    Exam 9: Aggregate Demand and Supply
  5. Question
    If AD Shifts Right as the Economy Booms, and Then
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If AD Shifts Right as the Economy Booms, and Then

Question 14

Question 14

Multiple Choice

If AD shifts right as the economy booms, and then SRAS shifts left, what happens to inflation?


A) It increases.
B) It decreases.
C) It stays the same,
D) It falls to zero.

Correct Answer:

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